Apple outperforms after Comcast report, Barron's column, bullish notes

Apple (AAPL +0.8%) appears "headed for a second-half sales bonanza" fueled by the arrival of one or more large-screen iPhone 6 models, writes Barron's Jack Hough.

He thinks the iPhone 6 launch could lead the percentage of iPhone owners who upgrade in a quarter to return to peak levels of 12%-14% later this year, after having fallen to ~9% in recent quarters. The iPhone has an installed base of 260M users.

Hough also exudes praise for Apple's "hardware-as-a-service" business model, and thinks shares could rise 20% to $635, or 13.6x C2015E EPS, next year, given Microsoft currently goes for 14.4x C2014E EPS.

Meanwhile, Pac Crest and UBS are each out with bullish notes. Pac Crest's checks lead it to think March and June quarter iPhone volumes could exceed its estimates of 39.7M and 33.6M, and that initial iPhone 6 component orders "[provide] a positive bias to our previous unit expectations."

UBS thinks the March and June quarters could be soft, largely due to iPhone 5C and iPad weakness, but thinks Sep. quarter sales will be healthy thanks to iPhone 6 demand.

Apple is ticking higher in the face of a 1.7% Nasdaq drop, as is supplier Cirrus Logic (CRUS +1.3%).

Earlier: Apple, Comcast reportedly in streaming service talks

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Comments (5)
  • 2puttwo
    , contributor
    Comments (659) | Send Message
    Anyone know why Samsung jumped 10% over the weekend? Just curious.
    24 Mar 2014, 01:32 PM Reply Like
  • gelstretch
    , contributor
    Comments (3505) | Send Message
    Look for AAPL and CMCSA to be the "marriage made in heaven", as tech moves to new levels.... the boys have been busy building stockholder value.
    24 Mar 2014, 02:59 PM Reply Like
  • chopchop0
    , contributor
    Comments (5320) | Send Message
    Look for this article to be another misguided prediction of "now this is the time to buy AAPL!"
    24 Mar 2014, 05:30 PM Reply Like
  • ultraz2
    , contributor
    Comments (1104) | Send Message
    Apple could possibly but most likely will not reach a per share price of $595 per share by mid 2015 .Apple I phone sales for China Mobile must reach 30 million I- phone sales by the end of 2014 if Apple is going to reach $ 595 a share by mid 2015.
    24 Mar 2014, 05:42 PM Reply Like
  • kimboslice
    , contributor
    Comments (1817) | Send Message
    Boy is Apple smart. Let Comcast deal with the nuts and bolts, with guys in vans stringing cables and hassling and billing people, Apple skims the cream doing no heavy lifting. You pay Apple with your iTunes account and do it through web browser or AppleTV browser. Watch out Neflix and AT&T internet "U-verse".


    It will be interesting to see. Who knows, maybe Comcast will give away AppleTV soon?
    24 Mar 2014, 11:45 PM Reply Like
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