Why Apple, Inc. Shares Could Pop Another 20%

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Apple (NASDAQ: AAPL  ) rallied about 3% Wednesday after Canaccord Genuity reiterated its Buy rating on the consumer electronics gorilla.

So what: Along with the bullish call, analyst Michael Walkley planted a price target of $112 on the stock, representing about 18% worth of upside to Tuesday's close. So while contrarian traders might be attracted to Apple's price strength over the past year, Walkley's call could reflect a sense on Wall Street that its growth prospects still aren't fully baked into the valuation.

Now what: According to Canaccord, Apple's risk/reward trade-off remains rather attractive at this point. "With our recent surveys indicating growing consumer awareness and channel willingness to pay more for new larger-screen iPhones, we still anticipate a very strong iPhone 6 upgrade cycle," said Walkley. "Further, we believe Apple will charge a premium for these larger-screen iPhones resulting in stable gross margin trends for overall Apple but with a higher gross margin dollar contribution due to an increasing revenue mix from higher ASP iPhones." When you couple that upbeat outlook with Apple's still-reasonable forward P/E in the low-teens, it's tough to disagree with Canaccord's bullishness.

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  • Report this Comment On July 23, 2014, at 12:32 PM, pondee619 wrote:

    "Shares of Apple (NASDAQ: AAPL ) rallied about 3% Wednesday after Canaccord Genuity reiterated its Buy rating on the consumer electronics gorilla."

    Are you stating that there is a causal relationship or merely a coincidental one?

  • Report this Comment On July 23, 2014, at 12:40 PM, zippero wrote:

    While Samsung's stock continues falling in S. Korea, Apple's continues to rise. The market has begun to realize that Samsung and all Android phone makers are just profitless commodities selling the same exact Android OS as each other with neverending, relentless price wars among themselves for scraps and 0.2% profit margins despite 80% market share. Apple focuses on quality and charging appropriately and with its profits invests further in its business and pulls ahead from the profitless, commoditized Android pack everday.

  • Report this Comment On July 23, 2014, at 1:02 PM, 650nm wrote:

    Each phone type has its drawbacks and benefits, not so much a duel between hardware vendors as it is between platform types. This list is a small summary of niggles with each:

    •Default apps:

    Android. You can choose what app to be a default app. iPhone makes you launch safari on links even if you have other browsers installed.

    •Direct access to storage

    You can't use the iPhone as a USB drive.

    •email attachments

    iphone can't attach files except what's in your photos. Android can send email with attachments from other cloud storage providers.


    Lightning plug is awesomely convenient, but microUSB is becoming all but universal


    iOS seems smoother, more stable, fewer glitches.

    Backups and restores are brainless (however you can't do selective restore). All saved games, profiles & history for apps transfers over to new phone.

    Android is selective, but depends on apps and is very manual


    Faster on iPhone. Better quality on android, depending on phone.

    •virtual assistant

    Google Now is better with searches, has very convenient predictive search cards.

    Siri voice command work better.

    Location reminders with Siri is better


    Fingerprint reader works well on iphone. Android is a totally mixed bag

    •extra apps

    iPhone can't hide anything except to stash in junk folder. Android home is totally customizable and has widgets. No bloatware on iPhones. Android depends on provider and some require root to remove.


    Can be very troublesome with Android, depending on build and vendor, but can work with a lot of obscure and legacy hardware. iPhone works with anything that is made to work with iPhone, period.

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Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3040881, ~/Articles/ArticleHandler.aspx, 9/3/2015 11:24:41 AM

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Brian Pacampara

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

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