This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple iPhone 6: What Wall Street's Saying

NEW YORK (TheStreet) - Apple (AAPL - Get Report) is gearing up for its next iPhone release, widely expected to be unveiled at a Sept. 9 event, which has helped spur renewed interest in Apple from an investor and consumer perspective.

Apple shares are up 24% year to date, but were trading down on Wednesday by 3.5% to $99.70 following a research note from Pacific Crest Securities saying to sell shares ahead of the event.

As chatter picked up about the iPhone with several sell-side analysts publishing notes on what to expect from Apple, Samsung held a triple-city simultaneous event in New York, Berlin and Beijing on Wednesday to release two new so-called phablets - the Galaxy Note Edge and the Galaxy Note 4 as well as the Gear VR headset, using technology from Facebook's (FB) Oculus Rift.

Here's what analysts are saying on Wednesday about Apple:

Andy Hargreaves, Pacific Crest Securities (Outperform; $100 PT)

We recommend taking profits in AAPL. Unless next week's event details massive incremental profit opportunities, we are likely to downgrade AAPL's rating. We expect Apple to gain material share and see a higher rate of early upgrades through the iPhone 6 product cycle. However, we believe sales to new iPhone users will decline beyond the iPhone 6, which is likely to drive iPhone unit sales down in F2016. Anticipation of this is likely to drive multiple compression through F2015 as the iPhone 6 cycle progresses. Even if we stretch our estimates for F2015 iPhone units, the likelihood for multiple compression over that time suggests the majority of potential upside from iPhone 6 is priced into the shares.

AAPL trades at 6.5x our F2015 EBITDA estimate of $70.0 billion and at 6.0x a bullish F2015 EBITDA scenario that includes an extra 15 million iPhone sales and 15 million iWatch sales. This leaves limited room for upside to the stock, in our view, unless Apple launches new products that can generate billions of dollars of incremental operating profit. We will be looking for this type of potential at the Sept. 9 event, but are likely to downgrade AAPL if we do not see it.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $91.98 -1.40%
FB $119.06 1.10%
GOOG $708.31 0.98%
YHOO $37.12 0.49%
TSLA $215.05 1.70%


Chart of I:DJI
DOW 17,672.15 +11.44 0.06%
S&P 500 2,049.57 -1.06 -0.05%
NASDAQ 4,708.9850 -8.1090 -0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs