Analyst raises Apple’s price target to $123 due to the high demand for new iPhones

News / Mobile phones

Analyst raises Apple’s price target to $123 due to the high demand for new iPhones

  • 2015-02-13 12:22:40
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News / Mobile phones Analyst raises Apple’s price target to $123 due to the high demand for new iPhones

Analyst Amit Daryanani at RBC Capital Markets has issued a noted to investors in which he has raised Apple’s stock price expectations to $123 from his original estimate of $120.

The reason for the increase in price target is because Daryanani thinks Apple had a better than expected holiday season due to the high demand for the new iPhones. He estimates that the company has shipped anywhere between 67-68 million units of iPhones in the Oct-Dec quarter with nearly 80% of them being the iPhone 6 and iPhone 6 Plus. The original estimate from him had pegged Apple to ship around 64 million units of the iPhone in Q4 2014.

Daryanani expects the average selling price (ASP) for Apple to be around $700 in the last quarter of 2014, thanks to a $100 price reduction in the 64GB storage variant of the new iPhone and a $100 premium demanded by the iPhone 6 Plus.

For the first quarter of 2015, Amit expects Apple to ship anywhere between 47 to 50 million iPhones. He has also accounted for other catalysts like the increasing popularity of Apple Pay and the upcoming Apple Watch in arriving at his price target of $123. Additionally, RBC Capital advised investors of an “upside scenario” where Apple’s stock price may reach as high as $135.

This estimate from Amit is inline with what Gene Munster of Piper Jaffray had forecasted back in November last year who has set a price target of $135.

[Via Apple Insider]




Categories: Mobile phones

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