December 2, 2013 10:20 AM EST Send to a Friend
Global Equities Research analyst Trip Chowdhry reiterated an Overweight rating and raised his price target on Apple (NASDAQ: AAPL) from $725 to $800 on "extremely strong" secular growth trends.
Chowdhry sees it as another Apple iDevice Holiday Season, citing the below observations:
Black Friday Sales of Apple iPad Air, iPad, iPad Mini Retina, iPad Mini and iPhone 5S were extremely Strong; exceeding internal expectations by at least 20%
Wi-Fi Version of iPad were out-selling Carrier versions by 3:1
About 90% of shoppers also purchased Apple Branded Smart Cover; about 20% of these opted for Leather Cover
Mac Book Air and iMac 27” sales were also Strong
Bose Soundlink Mini seemed to be the most popular Accessory
Interest in iPods was muted
The analyst also sees an acceleration in peripheral sales and App Store application sales which can lead to margin expansion. More customers are preferring Apple Smart Case, which retails between $30 and $40, the analyst said. The converged view is that this is a 90% margin business for Apple, he notes. The new iPads, new iPhones along with the launch of new iOS 7 have accelerated app sales, which is also a very high margin business for Apple, he said.
December 2, 2013 2:45 PM EST Send to a Friend
Jefferies analyst Peter Misek reiterated a Buy rating and $600 price target on Apple (NASDAQ: AAPL) Monday following anecdotal checks indicating the company had a great Black Friday weekend.
"Reports from both e-commerce and bricks & mortar indicate solid to better-than-expected sales", Misek notes. "Anecdotal reports from web traffic tracking firms
indicate iPad Air and iPhone 5S are tracking better than previous launches. For example, Fiksu notes that iPhone 5s usage is tracking higher than the iPhone 5 at this time after launch. Also, the iPad Air is tracking much higher than the iPad 4 and iPad mini. InfoScout estimates that Apple products constitute 22% of Target's Black Friday sales and that 6% of Walmart's sales were the iPad mini (Walmart announced sales of 1.4M tablets between 6pm and 10pm on Thursday)."
Misek believes the quarter may be tracking toward the high end. " Apple guided CQ4 revenues from $55B-$58B (Jef $56B, St $57B). With the strength of the iPad Air (iPads have lower GM than iPhones) and the iPhone 5s (lower GM than is typical for Apple's high-end iPhone due to fingerprint sensor yield issues), some of the revenue strength could be partially offset by GM pressure. But overall we see CQ4 trends as quite constructive."
December 2, 2013 9:20 AM EST Send to a Friend
Deutsche Bank analyst Chris Whitmore reiterated a Buy rating and raiesd its price target on Apple (NASDAQ: AAPL) from $575 to $625 following Black Friday checks which showed strong demand.
"Following a series of checks over the Black Friday weekend, we have become significantly more confident in our near-term estimates for Apple," Whitmore said. "In fact, if current momentum is sustained through the end of the year, we believe our December Q estimates could prove conservative."
The analyst also said it is becoming increasingly likely that Apple will expand its carrier relationships in China, providing improving visibility on 1H-14 iPhone unit shipments.
Looking ahead, investors will look toward product line extensions. "Beyond 1H, we expect investors to increasingly look forward to further product line extensions up market / higher in the product ASP stack. In the past 12 months, Apple moved down the ASP ladder with the 5C and the iPad mini. Looking forward, we expect Apple to migrate up with larger screen sized iPhone 6 (4.8" & 5.5") and the "iPad Pro" (13”).
He added, "The combination of extremely robust customer reception to its recently upgraded lineup and these future high margin, high ASP product launches should increase investor confidence in the medium-term margin and earnings profile at Apple. Similarly, we expect the key tenant of the bear thesis for Apple (ongoing margin declines) to be disarmed and allow for a re-rating of Apple's shares."
Apple (AAPL) Higher as China Mobile Deal Signed, Sealed, Delivered
December 3, 2013 8:50 AM EST Send to a Friend
It's been rumored for what seems like forever, but now new evidence points to an imminent Apple (NASDAQ: AAPL) iPhone deal with China Mobile (NYSE: CHL).
A webpage from China Mobile subsidiary, Suzhou, shows pre-orders being taken for Apple's Phone 5s and iPhone 5c. This webpage has since been taking down, but not before being grabbed and passed around online.
With 740 million subscribers, China Mobile is seen as a huge win for Apple. Analysts view the deal as a important component for the company's long-term growth.
In a recent note to clients, analyst Bill Shope of Goldman Sachs noted China Mobile plans to introduce fourth-generation mobile services on December 18th at the 4G global partners conference. This is likely when the Apple deal will be announced.
UBS Upgrades Apple (AAPL) to Buy; Several Positive Catalysts Will Play Out in FY14 (CHL)
December 3, 2013 6:27 AM EST Send to a Friend
UBS is upgrading Apple, Inc. (Nasdaq: AAPL) from Neutral to Buy, while also raising its price target from $540 up to $650.
Apple's risk-to-reward tradeoff looks favorable right now, UBS commented. Several key factors will play out next year, which include stabilizing iPad margins, a deal with China Mobile (NYSE: CHL), and a slew of new product launches.
The hiring of Burberry's Angela Ahrendts was also a smart move by Apple, UBS said, and will add to positive momentum for the company.
UBS sees institutional ownership in Apple moving from 64 percent closer to 73 percent over the next year or so. The firm also sees Apple's current 15 to 20 percent P/E discount to the market narrowing.
and with china mobile now a done deal we will print $572 anon.
A subsidiary's reservation website briefly went live Monday night.
Screen Shot 2013-12-02 at 10.22.20 PM FORTUNE -- The attached screen grab comes from a website registered by a subsidiary of China Mobile Limited (CHL) in Suzhou, a city of 5 million just west of Shanghai.
The site went live late Monday local time, and began taking pre-orders for the iPhone 5S and iPhone 5C.
UPDATE: A China Mobile spokesman told CNN's Beijing bureau Tuesday that there was no deal yet with Apple (AAPL).
Apple and China Mobile -- the world's largest mobile carrier -- have been working on an iPhone distribution agreement for more than six years.
With its 740 million subscribers, China Mobile is both Apple's biggest holdout and its biggest prize.
If the carrier is orchestrating a soft launch to work out the kinks, Suzhou is not a bad place to stage it. It's one of the richest cities in China, with a sizable population of smartphone users who would not only know about the iPhone, but could probably afford it.
NOTE: An earlier version of this story took the website, its iPhone ordering system and its provenance at face value. China Mobile's denial that a deal has been struck suggests that the site might have been a hoax. As of Tuesday 6:30 a.m. Eastern (7:30 p.m. Beijing time), the page had been replaced with Chinese characters that read, per Google Translate: "Reservation page information update, will be reopened later appointment. Please try again later, thank you for your support of Suzhou Mobile!"
Short Interest (Shares Short)
Days To Cover (Short Interest Ratio)
Short Percent of Float
Short Interest - Prior
Short % Increase / Decrease
Daily Naked Short Selling List
Short Squeeze Ranking™
% From 52-Wk High ($ 581.80 )
% From 52-Wk Low ($ 385.10 )
% From 200-Day MA ($ 461.76 )
% From 50-Day MA ($ 511.19 )
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sorry my bad $10.8 billion. again who has the capital cover that on each gap-up tick?
now implying a $12 move on or before friday. so buy the #$%$ dip. hope this helps.
AAPL Dec 2013 565.000 call (AAPL131206C00565000) -OPR Follow
4.65 Up 3.10(200.00%) 3:03PM EST
Add to Portfolio
Prev Close: 1.55
Expire Date: 6-Dec-13
Day's Range: 2.50 - 5.70
Contract Range: N/A - N/A
Open Interest: 9,076
ya it was a typo. but the point was $10.8 billion apple shares short in margin accounts is more than the GDP of Malta and more than half of the market cap of all s&p 500 corporations. that's a lot.