Apple Inc. (AAPL): Analysts Get Super Bullish On Stock Price

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November 19, 2014 5:31pm NASDAQ:QQQ NYSE:VGT

apple targetApple Inc. (NASDAQ:AAPL) had a great week. It hit multiple new highs and substantially beat the overall market for the five trading days ending on Tuesday, Nov. 18. During that time AAPL rose 5.25 percent, while NASDAQ


rose only 0.90 percent, and the Dow 0.41 percent.

Morgan Stanley Thinks AAPL Still Has Room to Grow

On Wednesday, a Morgan Stanley analyst wrote that while institutional ownership of AAPL has increased, it was still lighter than that in other companies, giving AAPL room to grow. She wrote that this makes “recent outperformance more sustainable than two years ago.”

Morgan Stanley has an “overweight” rating on AAPL, a $115 price target, and lists the stock as a “Best Idea.”

Citigroup Says Apple Pay Potentially “Very Innovative”

On Tuesday, a Citigroup analyst wrote that Apple Pay, the recently launched mobile payment system, could potentially be “very innovative and disruptive to many everyday user experiences.” He also thinks that the technology used for Apple Pay could be put to many other uses in addition to making purchases. It might be used in the future for keyless cars, hotel room entries, and maybe even to replace driver’s licenses and health insurance cards.

Developers Start Designing Apps for the Apple Watch

On Tuesday, Apple released WatchKit, which enables developers to make apps specifically for the Apple Watch, which is expected to become available for purchase in the Spring of 2015.

Some companies known to be creating apps for the Apple Watch are sportscaster ESPN (NYSE: DIS), photo-sharing service Instagram, and American Airlines (NASDAQ: AAL).

Price Target Increases

On Tuesday, two firms raised their price estimates on AAPL. BTIG raised its target from $128 to $135 per share, citing the larger screens and improved recording capabilities of the new iPhones.

Oppenheimer raised its estimate from $115 to $130, saying that Apple has a comprehensive portfolio of products and is well positioned for the long term.

App Store Shopping Now Much Easier in China

Earlier this week, Apple announced that it made a deal with China Union Pay, which is the most popular payment card in China, to add Union Pay as an option in Apple’s App Store. This will make it much easier for Chinese consumers to make purchases via iTunes. Previously, Chinese consumers had to use a complicated process to set up and prefund an online bank account. Observers expect this to lead to a big increase in app sales in China, which is already Apple’s second largest market worldwide for apps.

Quarterly Dividend Distribution

On Thursday, Nov. 13, Apple paid $0.47 per share to its shareholders, for a total payout of $2.9 billion for the quarterly distribution.

Vanguard Information Technology ETF — VGT

Although AAPL had a great week, there is always a risk of volatility when you invest in single-stocks. If you would like to share in AAPL’s success while reducing your risk, consider an ETF such as VGT, which invests in 412 stocks and currently has 15.51 percent of its funds in AAPL

By Diana Primavera, ETF Daily News


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