Canaccord Genuity Says Apple is Going to $140

Tech giant Apple Inc. (NASDAQ:AAPL) this morning received some bullish commentary from analysts at Canaccord Genuity.

The firm reiterated its Buy rating on AAPL and lifted its price target from $120 to $140. That new target represents a nearly 22% upside to the stock’s Thursday closing price of $115.57.

Canaccord analysts commented:

“Based on our survey work, U.S carrier promotions have driven strong initial demand for the new iPhone 7 products. Between the aggressive U.S. carrier promotions, favorable premium tier competitive environment due to the Galaxy Note 7 battery issues, and stronger than anticipated initial consumer demand, we believe initial replacement sales for the iPhone 7 are better than our expectations, leading us to slightly increase our estimates.”

Earlier this week, wireless carrier T-Mobile reported that iPhone 7 pre-orders had smashed all previous records. Fellow mobile provider Sprint released similar information.

Apple needs the iPhone 7 to be a big hit. The company is facing sharply waning market share in the smartphone space, hurt by higher competition and a lack of compelling reasons for current users to upgrade.

Based on early sales numbers, the new iPhone seems to be stemming the tide there. Chief competitor Samsung’s recent product recall is bound to help reverse that trend as well, at least in the short term.

Investors have been buying Apple stock in droves since the company’s iPhone 7 event earlier this month. The shares are up 9.5% in the past five trading sessions, which is benefitting a select group of ETFs with heavy AAPL exposure.

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Apple shares fell $0.45 (-0.39%) to $115.12 per share in premarket trading Friday. Year-to-date, AAPL has gained 9.79%, versus a 5.59% rise in the benchmark S&P 500 index during the same period.

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