Wall Street Analyst Says ‘Buy the Dip’ as Apple’s Stock Price Steadily Declines in September

Since hitting an all-time high of $164.94 on September 1, Apple's stock price has steadily declined throughout the month. Apple's closing price of $150.55 on Monday represents a nearly nine percent decline in just under four weeks.


Despite some negativity surrounding the stock, one Wall Street analyst believes the recent skid is a buying opportunity.

"We believe concerns around the strength of this cycle are misplaced and we would be aggressive buyers of the stock during this correction," said Brian White, a longtime Apple analyst at investment banking firm Drexel Hamilton.


White believes the staggered launch of the iPhone 8 and iPhone X is confusing industry observers, who are perhaps worried by reports of shorter lines at Apple retail stores and lower adoption rates of the iPhone 8 and iPhone 8 Plus.

"We believe more consumers in the developed parts of the world will pass on the iPhone 8/8 Plus and buy the iPhone X," added White, in a research note obtained by MacRumors. "Those that are on the fence will likely wait to see the iPhone X."

White is one of the most bullish Apple analysts, with a lofty $208 price target for the iPhone maker. If the price were to rise that high, Apple would be over a trillion dollar company based on market capitalization.

Apple's current slide is holding back the Dow Jones, which is up around 1.5 percent since the start of September. But it's not the only tech stock in the red, as Amazon, Facebook, and Netflix all declined Monday.

By comparison, Apple's stock price was up nearly 5 percent over this same period in each of the past two years.

Apple is up over 1 percent in early market trading today.


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Apple Predicted to Become Trillion Dollar Company Within 12 Months

Apple's stock price has declined around 9 percent from its all-time high of $156.10 in May, but Wall Street analyst Brian White believes the recent sell-off represents "yet another buying opportunity" as investors turn their focus to the so-called "iPhone 8" rumored to launch this fall.


White believes Apple remains "among the most underappreciated stocks in the world," according to his research note distributed to clients today. A copy of the report was obtained by MacRumors.
In our view, Apple's quarterly results will be less important this summer as investors are focused on the iPhone 8 this fall, along with the company's raised capital distribution initiative, depressed valuation and new innovations as showcased at WWDC. We still believe Apple remains among the most underappreciated stocks in the world.
White, an Apple bull, added that the upcoming iPhone cycle is setting up Apple to reach his $202 price target over the next 12 months, which would value the iPhone maker as over a trillion dollar company based on market capitalization. Apple's current market capitalization is around $737 billion.
Similar to the bottoming process in Apple during the summer of 2013 that drove a strong rally into the spring of 2015, we believe the bottom in the stock during May 2016 and the upcoming iPhone cycle is setting up Apple to reach our $202.00 price target over the next 12 months.
In May, RBC Capital Markets analyst Amit Daryanani also said Apple could reach or exceed a trillion dollar market cap within 12 to 18 months, with a stock price of $192-$195. Like White, Daryanani said the "iPhone 8" will be a major catalyst towards Apple's path to a trillion dollar valuation.

White maintains the highest price target for Apple's stock among all institutional analysts. AAPL closed at $142.73 on Thursday.


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Apple’s Stock Down 8% Since Reaching All-Time High Last Month

Apple shares are currently trading for around $143 after Monday's opening bell, around 3.5 percent lower than Friday's closing price of $148.98.

Apple CEO Tim Cook at the company's Worldwide Developers Conference last week

Apple's stock has dropped around 8 percent since reaching an all-time high of $156.10 on May 12, amid a wider downturn in the stock market. Technology stocks have been hit particularly hard, as some investors fear that stocks like Facebook, Amazon, Netflix, and Alphabet in particular rose too quickly.

Japanese bank Mizuho downgraded Apple to a "hold" rating today, as analyst Abhey Lamba believes enthusiasm around the company's upcoming product cycle is "fully captured" at current levels, with limited upside to estimates from here on out. The bank slashed its AAPL price target to $150, down from $160.

Andy Hargreaves, equity research analyst at Pacific Crest Securities, also downgraded Apple's stock last week. In a research note distributed to clients, he said excitement surrounding the so-called "iPhone 8" appeared to be "priced in," compounded by risks such as the potential for gross margin pressure.

Wall Street analyst Brian White of Drexel Hamilton believes otherwise, calling the recent dip in Apple's stock price another buying opportunity.

"In our view, Friday's sell-off in Apple represents yet another buying opportunity as investors turn their focus to the iPhone 8 this fall, along with the company's raised capital distribution initiative, depressed valuation, and new innovations," said White, in a research note distributed to clients on Monday.

"We continue to believe Apple remains among the most underappreciated stocks in the world," he added.

White said Apple shouldn't be compared to the likes of Facebook, Amazon, Netflix, and Google, jointly called FANG, as the iPhone maker's stock has significantly underperformed against its rivals over the past five years.

"For example, the average 'FANG' stock is up 674 percent over the past five years compared to a 100 percent increase for Apple and a 84 percent rise for the S&P 500 Index," said White, in a note obtained by MacRumors. "Even Microsoft has outperformed Apple with a 175 percent increase during this time."

White said Apple has "demonstrated resilience" through its "unique ability" to develop hardware, software, and services that work seamlessly together, despite seemingly never-ending concerns that the iPhone maker will fall victim to the missteps of consumer electronic companies of the past.


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Apple Nears $800 Billion Valuation On Path to Becoming World’s First Trillion Dollar Company

Apple's stock is currently trading above the $150 mark for the first time ever, after factoring in a 7-for-1 split in 2014, giving the company a record-high market cap of nearly $790 billion. That means Apple is just over $200 billion away from becoming the world's first trillion dollar company.


Google Finance shows Apple flirting with the $800 billion mark today, but the tool appears to be overcounting the company's number of outstanding shares, which totaled 5,225,791,000 as of last quarter. Apple's outstanding shares have declined as the company continues its share buyback program.

Apple's stock price will actually need to hit around $153 based on basic outstanding shares, or around $152 based on diluted outstanding shares, for a true $800 billion capitalization. Either way, it's close.

Apple's stock has been on an impressive run since dropping to as low as $89.47 in 2016, when the iPhone maker reported its first decline in annual revenue since 2001, and its first drop in iPhone sales ever.

Apple analyst Brian White of Wall Street investment firm Drexel Hamilton continues to believe Apple "remains among the most underappreciated stocks in the world," with "attractive upside" for investors. White raised his 12-month price target for Apple's stock to $202 today, up from an already bullish $185.

An excerpt from White's research note, distributed today and obtained by MacRumors:
Apple's valuation has been depressed for years as investors grew concerned that Apple would fall victim to the missteps of consumer electronic companies of the past. However, Apple has proven its resilience through its unique ability to develop hardware, software and services that work seamlessly together. We believe this positions Apple very well to capitalize on the trend toward more "things" becoming a computer.
White's price target implies that Apple could become the world's first trillion dollar company within the next year. Apple shares trading for $202 would currently give the company a market cap of around $1.05 trillion.

Over a dozen prominent Wall Street analysts remain upbeat about Apple's stock price heading into the second half of the year, with lots of excitement surrounding the significantly redesigned "iPhone 8" expected to launch in the fall. The smartphone's sales may be boosted by a large "supercycle" of users due to upgrade.

Apple's stock had briefly declined to as low as $144.27 last week after its second quarter earnings results fell slightly below Wall Street expectations, but the drop proved to be only a blip on the radar.


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iPhone 8 Pre-Orders Still Expected in September, But Shipments Likely Delayed Until ‘Several Weeks Later’

Apple's widely rumored trio of new iPhones, including traditional 4.7-inch and 5.5-inch models and an all-new 5.8-inch model with an OLED display, will likely be available to pre-order in September, but deliveries of the 5.8-inch model will not begin until "several weeks later," says longtime Apple analyst Brian White.


An excerpt from White's research note with investment banking firm Drexel Hamilton, obtained by MacRumors:
Our contact strongly believes the 5.8-inch iPhone 8 will be delayed by several weeks due to challenges around the 3D sensing technology, but still in time for the December holidays. This is not the first time that we've heard about a potential delay with a new iPhone; however, our contact was so emphatic about the delay that we are taking this data point more seriously. Since it is only April, this situation could improve. Essentially, our contact believes customers will be able to pre-order the new 5.8-inch iPhone 8 along with the new 4.7-inch and 5.5-inch iPhones in September; however, the 5.8-inch iPhone 8 will not be available for delivery until several weeks later.
White, who is currently in Taiwan to garner information from Apple's supply chain, cited a "smartphone contact" who is "diligently following the supply chain data points" around the tentatively named "iPhone 8" as the source of his information, so it's not a completely baseless prediction.

In fact, White's prediction lines up exactly with recent supply chain information gathered by the research arm of Barclays. The bank similarly expects Apple's first iPhone with an OLED display to launch in September, but it believes the majority of stock may not be available until later in the fourth quarter.

Together, the predictions suggest that shipping estimates for Apple's tenth-anniversary iPhone, which has been variously dubbed the iPhone 8, iPhone X, iPhone Pro, or iPhone Edition, could slip to several weeks out just minutes after pre-orders begin, much like the iPhone 7 Plus in Jet Black last year.

In other words, it might be hard to get your hands on the highest-end iPhone prior to the holidays, but it likely won't be impossible.

Chinese-language Economic Daily News recently said the "iPhone 8" might not launch whatsoever until October or November, as suppliers are supposedly encountering "technical issues" related to the display lamination process, while challenges exist in integrating the 3D sensing front camera system.

However, of the two scenarios, it seems more likely that at least some quantities of the "iPhone 8" will be available to pre-order in September alongside the tentatively named iPhone 7s and iPhone 7s Plus.

Related Roundup: iPhone 8 (2017)
Tag: Brian White

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Apple’s Stock Soars Past $1,000 Pre-Split Price as Bulls Think ‘Golden Opportunity’ to Buy Remains

AAPL rose over 2 percent on Tuesday to close at $143.80, a new all-time high. The stock also surpassed a per-share price of $1,000 when adjusted for Apple's 7-for-1 stock split in June 2014. Apple now has a market valuation of over $750 billion on its path towards becoming the world's first trillion dollar company.


The milestone comes as longtime Apple analyst turned venture capitalist Gene Munster said now remains a "golden opportunity" to buy Apple stock. Munster said his new firm Loup Ventures has a $180 to $200 price range for AAPL, and he expects "clear sailing" for Apple investors in the months ahead.

Apple analyst Brian White of brokerage firm Drexel Hamilton maintained his "buy" rating for AAPL today, with a price target of $185. He continues to believe that Apple remains "among the most underappreciated stocks in the world" and that "Apple has Samsung on the ropes like never before in recent memory."

An excerpt from White's latest research note obtained by MacRumors:
With Apple operating on all cylinders and a strong iPhone launch expected this fall, combined with the rise of more China-based competitors, we believe the pressure is on Samsung to deliver a strong upgrade without any missteps. We believe if Samsung stumbles again, the company's position in the smartphone market could be permanently impaired.
Apple analyst Steven Milunovich of investment bank UBS has maintained his "buy" rating for AAPL as well, with a price target of $151 set in late February. In a bullish scenario where Apple has "caught the next major trend," he believes the stock's price could reach $200 within the next two years or so.

Apple is widely expected to benefit from another "supercycle" of iPhone upgrades this year, given a "large than ever" base of existing customers with an iPhone 6 or older device. Apple's stock price has also been fueled by excitement surrounding a rumored 5.8-inch iPhone with an edge-to-edge OLED display.


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Apple’s Stock Soars Past $1,000 Pre-Split Price as Bulls Think ‘Golden Opportunity’ to Buy Remains

AAPL rose over 2 percent on Tuesday to close at $143.80, a new all-time high. The stock also surpassed a per-share price of $1,000 when adjusted for Apple's 7-for-1 stock split in June 2014. Apple now has a market valuation of over $750 billion on its path towards becoming the world's first trillion dollar company.


The milestone comes as longtime Apple analyst turned venture capitalist Gene Munster said now remains a "golden opportunity" to buy Apple stock. Munster said his new firm Loup Ventures has a $180 to $200 price range for AAPL, and he expects "clear sailing" for Apple investors in the months ahead.

Apple analyst Brian White of brokerage firm Drexel Hamilton maintained his "buy" rating for AAPL today, with a price target of $185. He continues to believe that Apple remains "among the most underappreciated stocks in the world" and that "Apple has Samsung on the ropes like never before in recent memory."

An excerpt from White's latest research note obtained by MacRumors:
With Apple operating on all cylinders and a strong iPhone launch expected this fall, combined with the rise of more China-based competitors, we believe the pressure is on Samsung to deliver a strong upgrade without any missteps. We believe if Samsung stumbles again, the company's position in the smartphone market could be permanently impaired.
Apple analyst Steven Milunovich of investment bank UBS has maintained his "buy" rating for AAPL as well, with a price target of $151 set in late February. In a bullish scenario where Apple has "caught the next major trend," he believes the stock's price could reach $200 within the next two years or so.

Apple is widely expected to benefit from another "supercycle" of iPhone upgrades this year, given a "large than ever" base of existing customers with an iPhone 6 or older device. Apple's stock price has also been fueled by excitement surrounding a rumored 5.8-inch iPhone with an edge-to-edge OLED display.


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Wall Street Firm Says Apple Remains One of the World’s Most Unappreciated Stocks

Apple-BondsWall Street brokerage firm Drexel Hamilton today informed its clients it continues to believe Apple is "one of the most underappreciated stocks in the world," according to a research note seen by MacRumors.

Apple analyst Brian White retained his "buy" rating for AAPL and $185 price target. Apple shares are currently trading at around $114, their highest level since late October, after rising over 1% in intraday trading.

White said Apple continues to face a never-ending waterfall of "gloom and doom" media reports, just months after launching the new MacBook Pro and iPhone 7.

Nevertheless, he looks forward to 2017, when he believes Apple will have a "more durable iPhone cycle" that can return the company to more consistent sales growth after three consecutive quarterly declines.
Given this weak stock performance over the past couple of years, and our expectation of a more durable iPhone cycle that can return the company to more consistent sales growth, we look forward to 2017. In the near-term, we look for Tim Cook to make Apple grow again in [the first quarter of the 2017 fiscal year] on the back of the iPhone 7 and a happy holiday season, while we look forward increased cash distribution in 2017 [and] the launch of iPhone 8 and more color on future innovations.
Drexel Hamilton said Apple's stock has risen by 7% this year, trailing the 10% overall increase in stocks among the S&P 500 Index.


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