Tags: Apple | product | watch | iPhone

Analysts Mixed on Apple After New Product Announcement

By    |   Wednesday, 10 September 2014 01:52 PM

Apple unveiled several new products Tuesday, including a smart watch and a larger-screen mobile phone. Some analysts were impressed, and some weren't.

Count Goldman Sachs analysts among the impressed. They lifted their earnings estimate for fiscal 2015 to $7.67 a share from $7.57 previously, MarketWatch reports.

And they boosted their 12-month share-price target for Apple to $115 from $107. The stock traded at $100.18 Wednesday afternoon, up $2.19 from Tuesday's close.

Editor’s Note:
New Warning - Stocks on Verge of Major Collapse

Goldman analysts reiterated their buy rating on Apple. The larger phone screens represent "an important driver of improved growth in that segment," they wrote in their report, according to MarketWatch.

While they view the smart watch as "surprisingly innovative," they don't expect it to add much value to the company.

But Pacific Crest Securities analysts weren't so enthusiastic. They see tepid iPhone growth and a "lack of compelling features" on the watch, CNBC reports. The analysts downgraded Apple to perform from outperform.

"We continue to believe Apple's strong customer loyalty will protect margins and cash flow, limiting downside in the shares," they wrote.

"However, unless Apple Watch proves to be a surprisingly large mass-market hit, we believe multiple contraction will offset earnings growth over the next year and prevent significant stock appreciation."

Investment star Jeff Gundlach, CEO of DoubleLine Capital, is bearish on the stock. "Yes, they're doing fairly well and they're bullish about their new rollout," he told CNBC before the new product release.

"But I think that's priced into the stock. I don't think I would buy it. I would sell it."

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

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Apple unveiled several new products Tuesday, including a smart watch and a larger-screen mobile phone. Some analysts were impressed, and some weren't.
Apple, product, watch, iPhone
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2014-52-10
Wednesday, 10 September 2014 01:52 PM
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