Apple Inc. (NASDAQ:AAPL) users have been anticipating the release of the new IOS 8 system update. Now that it is here, will there will long lines to buy Apple?
Apple in the News
Apple held its 25th annual Apple Inc. (NASDAQ:AAPL) Worldwide Developers Conference on Tuesday, June 3 where the tech company revealed the new IOS 8 due to come out this August, containing 12 new operating systems. These systems include HomeKit, HealthKit, caller ID in all place, and Battery Usage by App, just to name a few. The new IOS 8 will bring Apple’s desktop and smartphone software closer together. Apple also revealed a new desktop operating system called “Yosemite” whose features include new icons and translucent menu bars.
What Does This Mean for Apple’s Stock?
On June 3, Canaccord Genuity analyst Michael Walkley reiterated a BUY rating for Apple Inc. (NASDAQ:AAPL) and raised his price target from $660 from $710. He reasoned, “These introduced features combined with the capabilities acquired through Beat’s Music purchase should enable Apple to stem the decline in iTunes music download sales and increase the revenue contribution from its higher-margin Software and Services business…We believe an increased mix of higher-margin software sales could in turn drive P/E multiple expansion.” Walkley has a +3.3% average return on all stocks and a 58% success rate according to TipRanks. He has a +1.9% average return on Apple.
Morgan Stanley analyst Kathryn Huberty also reiterated an Overweight rating for Apple Inc. (NASDAQ:AAPL) on June 3 with a $690 price target. She noted, “The developer conference keynote focused on software and tighter integration with 3rd-party apps. While no new hardware was announced, we see services revenue upside from iCloud, Health and smart home-related apps and view developer access to Touch ID as a step in the direction of mobile payments.” Huberty has a +0.8% average return on all stocks and a 53% success rate. She has a +5.9% average return on Apple.
On the other hand, on June 3, Wells Fargo analyst Maynard Um reiterated a Market Perform rating for Apple Inc. (NASDAQ:AAPL). He explained, “We believe the positives of potential near-term ‘s’ cycle gross margin improvements and new products are balanced against potential gross margin pressure later in the year, limited amount of incremental market cap opportunity in the existing product segments, and a potential balance of power shift back to wireless operators from handset vendors.” Um has a +1.6% average return on all stocks and a 60% success rate. He has a +4.1% average return on Apple.
Apple Inc. (NASDAQ:AAPL) has been on the rise lately, but not all analysts are agreeing that now is the time to BUY. Who do you trust?
Carly Forster writes about stock market news. She can be reached at Carly@tipranks.com