Canaccord Genuity Reaffirms “Buy” Rating for Apple (AAPL)
Canaccord Genuity reported on Monday that they have maintained both their rating and price target for tech giant, Apple Inc.(AAPL).
The firm reported that they have reaffirmed their “Buy” rating and $800 price target for AAPL. This price target suggests a 26% increase over the stock’s current price of $590.20.
Analysts believe the company will see high iPhone 5 sales as the company obtains a larger supply. The firm has increased its estimate for December iPhone sales from 45 million to 47.5 million, but has reduced its March quarter estimates from 47.5 million to 46 million.
Analysts have raised their first quarter EPS estimate from $13.46 to $14.04 per share. Additionally, they have increased their fiscal 2013 estimates slightly from $53.13 to $53.15.
The firm commented, “our November channel checks indicated very strong sales of the iPhone 5 at AT&T, Verizon, and Sprint and also in international markets with dramatically improved supply,” analyst T. Michael Walkley comments. “Given these checks combined with Apple’s strong plans for an iPhone 5 ramp to 240 carriers in 100 countries by year end, including Chinaon December 14, we have slightly increased our above-consensus December quarter iPhone estimates. Bolstered by the iPhone 5, we believe Apple’s industry-leading software ecosystem and integrated hardware experience will lead to a strong multi-year product cycle.”
Apple shares were up $5.04, or 0.86% during premarket trading Monday. The stock is up 44.51% YTD.
The Bottom Line
Shares of Apple (AAPL) have a 1.81% dividend yield, based on Friday’s closing stock price of $585.28. The stock has technical support in the $560-$565 price area. If the shares can firm up, we see overhead resistance around the $600-$614 price levels.
Apple Inc.(AAPL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.