AAPL Stock: $140 Price Target By Raymond James

By Amit Chowdhry ● November 1, 2020
  • The stock price of Apple Inc. (NASDAQ: AAPL) has received a price target increase from $120 to $140 by Raymond James. These are the details about the price target increase.

The stock price of Apple Inc. (NASDAQ: AAPL) has received a price target increase from $120 to $140 by Raymond James. Raymond James analyst Chris Caso is also keeping an “Outperform” rating on Apple shares following the company’s quarterly results in September.

Caso believes investors can expect better than just growing iPhone sales year-over-year. What makes the guidance trickier for analysts is that Apple has not taken preorders on half of the new iPhone lineup yet.

This week, Apple reported that it delivered record quarterly revenues as work-from-home has been increasing the demand for Macs and iPads. However, Apple saw a sharp decline in iPhone sales — which was mainly due to the delayed launch of new smartphones.

Q4 Results

For the quarter ended September 26, 2020, Apple reported $64.7 billion in revenue — up from $64 billion in the same quarter in 2019. This is slightly higher than the $64 billion forecasts. The earnings per share slightly dropped to $0.74 compared to $0.76 a year ago. And the net income fell to $12.7 billion from $13.7 million a year earlier. International sales accounted for 59% of the quarter’s revenue.

“Apple capped off a fiscal year defined by innovation in the face of adversity with a September quarter record, led by all-time records for Mac and Services,” said Apple CEO Tim Cook in a statement. “Despite the ongoing impacts of COVID-19, Apple is in the midst of our most prolific product introduction period ever, and the early response to all our new products, led by our first 5G-enabled iPhone lineup, has been tremendously positive. From remote learning to the home office, Apple products have been a window to the world for users as the pandemic continues, and our teams have met the needs of this moment with creativity, passion, and the kinds of big ideas that only Apple can deliver.”

The sales for iPhones in the quarter fell to $26.4 billion from $33.4 billion. But Apple was able to offset the revenue due to the increases in the iPad and Mac sales along with sales of wearables, accessories, and services — which includes licensing deals and App Store sales.

Apple’s Board of Directors also declared a cash dividend of $0.205 per share of the company’s common stock. The dividend is payable on November 12, 2020 to shareholders of record as of the close of business on November 9, 2020.

“Our outstanding September quarter performance concludes a remarkable fiscal year, where we established new all-time records for revenue, earnings per share, and free cash flow, in spite of an extremely volatile and challenging macro environment,” explained Apple CFO Luca Maestri. “Our sales results and the unmatched loyalty of our customers drove our active installed base of devices to an all-time high in all of our major product categories. We also returned nearly $22 billion to shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time.”

Apple did not provide an outlook for the current quarter.

Here is how some of the other brokerages have rated Apple this past week:

Goldman Sachs – Sell Rating – $75 Price Target
DA Davidson – Buy Rating – Price Target Increased From $120 to $133
UBS Group – Neutral Rating – Price Set At $115
Barclays – Neutral Rating – Price Set At $100

Disclosure: I have a small AAPL position in my stock portfolio.