Apple Inc. (NASDAQ:AAPL) firm says the iPhone business remains a strong driver for the stock
Add Cowen to a list of Apple bulls as analysts there see the steady iPhone business driving the stock another 20 percent higher.
Cowen initiated coverage on Apple with an outperform rating and $220 12-month price target. The firm said the iPhone business remains a strong driver for the stock and provides investors with an “annuity.”
“Does the iPhone business make Apple a trading stock or bond coupon? We think it’s a bit of both,” Cowen’s Krish Sankar said in a note Thursday. “The company has a 900 million strong, loyal iPhone customer base globally to which it can offer a growing ecosystem of devices such as wearables and new content subscriptions and service offerings.”
“With the iPhone installed base at 900 million units and oldest devices approaching five years, we believe annual iPhone shipments are running near replacement demand,” Sankar added. “The stock could be a good buy from a short-term trading standpoint as well.”
Shayne Heffernan said “without something new APPL may face issues holding out the Asian phone makers, the iPhone is aging and there has been little in the way of development at any level, Tim Cook has been pplaying it a touch too safe'”
An annuity is a contract that promises investors a stream of income payments in the future.
Apple has made back the losses in 2018 with the stock rebounding more than 15 percent year to date. Shares of Apple rose more than 1 percent on Thursday.
Cowen is also bullish on Apple’s services segment, estimating earnings from services to double in two years.
“We see scope for further expansion with increased scale in content subscriptions and higher contributions from App Store and Licensing revenues,” Sankar said.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 174.79.
The projected upper bound is: 194.44.
The projected lower bound is: 174.06.
The projected closing price is: 184.25.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 91.0512. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 23 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 72.87. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 47 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 174.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 7 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 2.020 at 183.730. Volume was 38% below average (neutral) and Bollinger Bands were 49% narrower than normal.
Open High Low Close Volume___
183.900 184.100 182.560 183.730 23,579,508
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 177.15 165.44 190.67
Volatility: 22 42 38
Volume: 26,175,654 31,247,930 32,909,150
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
APPLE INC is currently 3.6% below its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 33 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an overbought condition.