Apple (AAPL) Price Target Adjusted to $86-$96 at Wells Fargo

Wells Fargo maintained a Market Perform rating on Apple (NASDAQ: AAPL) with a post-split price target of $86-$96 (from $595-$640).

Analyst Maynard Um said, "We are adjusting our valuation range to $86-$93 to reflect the 7-for-1 stock split (maintaining our 13-14x multiple on our split-adjusted FY2015 EPS estimate of $6.56). We believe Apple shares have benefited from strong investor sentiment driven by broader market trends and the prospect of positive news flow expected over the coming quarter, of which the share split, in our opinion, was one."

"We believe remaining near-term material news flow will be the well-anticipated launches of the iPhone 6 and iWatch. Further stock appreciation, in our opinion, would have to come from material surprises over and above these announcements and unit expectations. Our Market Perform rating is based on our view that there is limited market cap opportunity in the markets Apple currently plays in, our expectation for gross margin pressures in the upcoming cycle, and beginning signs of a balance of power shift between operators and handset vendors," he added.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $645.57 yesterday.

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