Apple (AAPL) PT Raised to 'Street High' $195 at Cantor Fitzgerald
Cantor Fitzgerald analyst Brian White reiterated his Buy rating and boosted his price target on Apple (NASDAQ: AAPL) to a 'Street High' $195 (ex-Icahn) from $180, citing the powerful iPhone cycle and signs of early Apple Watch momentum.
White commented, "Last night, Apple reported a big beat in the March quarter with upside driven by stronger-than-expected iPhone sales and solid performance across emerging markets (including Greater China), while the company provided a strong 3Q:FY15 outlook and expanded its capital return program to $200 billion through March 2017 (vs. $130 billion through CY:15 with $112 billion returned at the end of 2Q:FY15). The momentum of this iPhone cycle is notably stronger compared to those in the past, which we believe is driven by the larger screen sizes of the iPhone 6/6 Plus, combined with strength in emerging markets and the growing attraction of Apple's robust digital ecosystem. Adding to the allure of this cycle is the ramp of Apple Watch that we believe will prove to be the best selling new product in Apple's history (within first 12 months). As such, we are increasing our EPS estimates for Apple and raising our 12-month price target to $195.00 (from $180.00)."
The firm is slightly tweaking 3Q:FY15 revenue estimate to $49.5 billion from $49.4 billion (consensus is at $46.9 billion), while increasing EPS projection to $1.75 from $1.71 (consensus is at $1.69). For FY:15, they are boosting EPS projection to $8.94 from $8.72, while increasing FY:16 EPS projection to $9.78 from $9.64.
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Shares of Apple closed at $132.65 yesterday.