Deutsche Bank Initiates AAPL Coverage with $650 Target Price

| Apple Stock Watch

Deutsche Bank analyst Sherri Scribner initiated coverage of Apple's stock on Friday with a US$650 target price, saying the company likely has some surprises in store. Apple hasn't released any new products yet in 2014, but company CEO Tim Cook has said that there would be big announcements throughout the year.

Deutsche Bank initiates AAPL coverage with $650 12 month target priceDeutsche Bank initiates AAPL coverage with $650 12 month target price

In a note to investors, Ms. Scribner said,

While our model does not currently include the benefit of a new product introduction, we believe Apple still has the ability to 'surprise and delight' its customers, therefore any new and successful product would provide upside to the company’s already above-market growth rates.

She added that Apple's revenue is growing faster than the market, according to Barrons.

Investors, analysts, and consumers are all watching closely to see what comes from rumors that Apple is working on wearable technology devices. The company is expected to enter into the market with a wrist watch-type device that links wirelessly to the iPhone and monitors your health and fitness, much like Fitbit and Nike Fuelband.

Apple's wearable devices are generally expected to ship some time later this year.

Ms. Scribner's $650 target price comes with a "Buy" rating. Apple is currently trading at $520.70, down 2.78 (0.53%).


Steffen Jobbs

The way Apple’s share price is constantly slipping lower, there doesn’t seem any way possible for Apple’s share price to reach even $600 in 12 months time.  It was also given a rating of market perform with a target price lower than it already is.  Apple has become a recent investor’s nightmare over the past couple of years.  Most tech stocks rose about 20% in 2013 while Apple barely moved yet even in 2014, while many stocks have given up some of their gains, Apple simply continues to drop so even those relatively decent share buybacks aren’t supporting Apple’s share price.


Reason does not seem to be driving Apple’s share price, unless investors believe all the negative reporting about the company.  Here are Price/Earnings ratios at close of business 11 Apr 2014:
AAPL 12.92
MSFT 14.52
DIS     21.17
GOOG 27.91
AMZN 311.73

We’ll see if Sherri Scribner is on the right track by the end of 2014.

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