Apple Inc. (AAPL) Shares Fall Despite Price Target Increases

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Apple Inc. (AAPL) Shares Fall Despite Price Target Increases

By Carly Forster

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Apple Inc. (NASDAQ:AAPL) has taken a little tumble in share prices lately and no one is quite sure why. However, analysts have remained optimistic on the tech giant and are continuing to issue bullish ratings and raise their price targets.

The latest price target increase for Apple Inc. (NASDAQ:AAPL) came from BMO Capital analyst Keith Bachman who maintained an Outperform rating on the stock, raising his price target from $113 to $123 on December 8th.  The price target increase came after a trip Bachman made to Asia where he saw roughly one-half of potential iPhone configurations available at Apple retail stores, and more of the iPhone 6 Plus’s in stock now than they were last month.

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In addition, Bachman maintains that Apple Inc. (NASDAQ:AAPL) is limiting supply of its products to its partners which is ultimately helping Apple’s December gross margins. The analyst also increased his fiscal 2015 EPS estimate from $7.90 to $7.97 and raised his fiscal 2016 EPS estimate from $8.24 to $8.63.

Bachman currently has a 72% success rate recommending stocks and a +27.0% average return per recommendation. He has rated Apple a total of 67 times, earning a 75% success rate recommending the stock.

Citigroup analyst Jim Suva also gave Apple Inc. (NASDAQ:AAPL) a Buy rating and increased his price target from $120 to $135 on December 8th. Suva pointed out the higher demand for the 64GB and 128GB iPhone 6 models. In addition, he cited that longer lead-times and stock outs will result in higher demand that will last longer than the December quarter.

Suva currently has a 53% success rate recommending stocks with a +6.7% average return per recommendation. He has recommended Apple 6 times with an 83% success rate.

Cantor Fitzgerald analyst Brian White also maintained a Buy rating on Apple Inc. (NASDAQ:AAPL) on December 8th but kept his price target at $143. He noted, “With Apple shares trading at 12.3x our CY:15 EPS estimate, we continue to believe the stock has healthy upside over the next year as reflected in our 12-month price target of $143.”

White currently has a 69% success rate recommending stocks with a +18.8% average return per recommendation. He has rated Apple 93 times, earning an 80% success rate recommending the stock.

Will the rise in price targets give Apple Inc. (NASDAQ:AAPL) some momentum, or has the stock leveled out?

On average, the top analyst consensus for Apple is Moderate Buy.

to see more recommendations for Apple Inc. (NASDAQ:AAPL), visit TipRanks today!

Carly Forster writes about stock market news. She can be reached at Carly@tipranks.com

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TipRanks was founded in 2012 with the goal of giving power back to the individual investor. Our hope is that by making analyst performance data easily available and highly visible to the investing public, TipRanks will not just help save others from our investing mistakes, but will also bring back accountability, objectivity, and transparency to the business of stock picking and analyst reports. TipRanks is proudly unaffiliated with any investment firm.
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8 COMMENTS

  1. Well said.
    For the record, last spring Apple committed to raising the dividend “every year”. So it’s safe to say it’ll get a dividend boost next year, the one after, the one after, the one after…

  2. I’m hoping for the same kind of fall today as yesterday, when I added 15% to my position and watched it soar from the $110 price I purchased it at to over $114..
    LMAO!!!!!!

  3. Agreed. I said the same thing but they didn’t post my comment. I guess I was a bit more critical.
    I made a bundle today buying at $110 & $110.18

  4. What?!!?
    AAPL was up today; and better still, up over $4 from where I bought it at $110 this morning.
    And you see it went down today where? You are confused or woke up and looked at yesterday.

  5. There is every indication that the stock will move higher eventually into at least the $120 range. I’d consider it safe to buy more Apple shares at this level. I’m sure Apple is buying back stock on the dips to keep the stock from dropping too far. Apple’s share price has never acted like a Tesla or a Netflix when it comes to staying in lockstep with analyst price target upgrades. I’ve never seen any correlation of analyst price targets to Apple stock movement. If anything, the analysts numbers usually lag behind Apple’s share price movement. I’m not getting excited over any high price targets for Apple because they mean absolutely nothing. I do know the iPhone is in high demand and Apple continues to open more retail stores around the world. There is still some opportunity for Apple to grow its customer base.

    However, I did have to laugh at some analyst saying Apple will fail to meet estimates due to decreased iPad sales. When a company is selling a product that has far higher margins and selling in much higher numbers than the product it’s overlapping, I’d say that’s a very positive sign for a company to exceed overall estimates. Apple shareholders are going to do quite well whether Wall Street fully acknowledges the fact or not. I’m expecting another dividend boost next year and that more than satisfies me. I think Tim Cook is doing a fine job although I’ve heard plenty of negative criticisms about him throwing Apple’s money away. I suppose he can’t please everyone especially those who feel they’re smarter than Apple’s entire management team.

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