AAPL shoots up after strong Q3 earnings

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And just when people were counting Apple out!
Photo: Ste Smith/Cult of Mac

AAPL shares opened almost 8 percent up this morning following Apple’s better-than expected Q3 earnings and sunny outlook for this quarter were announced yesterday.

Shares rose $7.33 after analysts were sufficiently convinced that Apple has “stabilized” falling iPhone sales, along with other positives like a booming App Store. Seriously, do the naysayers and doom-predicters never learn?

To coincide with the news, a number of analysts have raised their price targets on AAPL, as well as offering more bullish statements on the company’s likely future.

Walter Piecyk of BTIG Research raised his AAPL price target from $115 to $124, and commented that he would be willing to do so again “as we grow more comfortable with our estimates” — although he voiced concerns about Apple’s iPhone upgrade periods elongating from two to three years.

Jim Suva of Citigroup meanwhile added $5 to his price target to bring it to $120. William Power of R.W. Baird issued a price target of $115 and wrote that, “Strong developing market demand, despite global macro questions, and record switching rates appeared to offset our concerns with slowing U.S. upgrade rates”

That same $115 price target was reiterated by Amit Daryanani of RBC, who put it most simply with the headline: “Amazing Things Happen When Investors Don’t Expect Much.”

The highest AAPL price target remains Piper Jaffray analyst Gene Munster, who currently has Apple sitting at $151. “We continue to believe that Apple will return to growth in Dec-16 via consumer interest in the iPhone 7 combined with easier comps,” he wrote. “If we are wrong, we think the disappointment of the iPhone 7 will pave the way for a strong iPhone 7S/8 cycle in CY17-18 given a large 2-3 year old device upgrade pool.” Munster adds that he thinks investors are too focused on this year’s iPhone 7 and not focused enough on the big things in Apple’s future.

And just when people were getting read to count Tim Cook and Apple out…

Source: Barrons