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  • Low Expectations for Apple's Upcoming Event Could Potentially Work in Apple's Favor


    According to investment firm, Wells Fargo, everything regarding Apple’s upcoming “Hey Siri” event is already known, suggesting that if Apple does have any surprises left, the company’s stock could be pushed higher. Analyst Maynard Um said that even investors who are typically bullish on Apple have “low expectations” for the company’s September 9th event. For the record, the company is currently expected to announce a new “iPhone 6s series as well as a next-gen Apple TV.

    Um continues by stating that it’s a good time for investors to buy in as he reiterates his “outperform” rating for shares of AAPL as he sees a more attractive risk/reward for investors following a recent selloff. He had been bearish on Apple until late last month when he declared that losses seen by the company’s stock was an overreaction to the market. With continued strong sales in China, the analyst claims that Apple’s losses created a buying opportunity for investors who might be on the fence.

    As far as the “iPhone 6s goes, Um agrees with the rumors surrounding the device including Force Touch Input, 2 GBs of RAM, a faster “A9” processor and improved cameras. He was also pleased that the new iPhone is once again expected to come in a capacity of 16 GB, 64 GB and 128 GB. According to him, the entry-level 16 GB model helps to push models to the pricier 64 GB model for roughly $100 more, improving the devices average selling price and Apple’s margins.

    He acknowledged that the S-cycle iPhone upgrades typically don’t show anywhere near as much growth as well as Apple’s full-fledged redesigns. That being said, he does believe that those concerns about tough comparisons in the December quarter are already priced into the company’s shares. He wrote the following regarding the matter:

    We believe the stock has been reflecting this challenge and see the recent selloff as offering a more attractive risk/reward.
    As far as the new Apple TV goes, rumors are suggesting that it will tout a $149 price tag and analysts believe that Apple has to demonstrate significant innovation in its next-gen model to justify the price increase. The current version, which is the third-gen Apple TV, debuted at $99 but is currently sold for $69.

    Wells Fargo has continued to maintain its “outperform” rating for AAPL stock with a “valuation range” of $125 to $135.

    We’ll have to wait and see how Apple does and how much of the speculation turns out to be true.

    Source: Wells Fargo via AppleInsider
    This article was originally published in forum thread: Low Expectations for Apple's Upcoming Event Could Potentially Work in Apple's Favor started by Akshay Masand View original post