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Analysts Are Split Over The Future Direction Of Apple's Stock

Analysts Are Split Over The Future Direction Of Apple's Stock

January 2, 2014
Which direction will Apple stock head in 2014? Analysts are divided, according to AppleInsider. Brian White of Cantor Fitzgerald remains decidedly bullish on Apple. He believes the next 12 months will be a “year of innovation” for the company. In a new report to investors, White notes Apple is likely to release the so-called “iWatch” this year, as well as larger iPhone and iPad units. He calls the rumored “iPad Pro” a “hybrid device.” White is also bullish on Apple thanks to the recently completed deal between Cupertino and China Mobile. On Jan. 17, the world’s largest carrier begins selling iPhones for the first time. Cantor Fitzgerald has maintained its price target of $777 per share for Apple stock. Maynard Um of Wells Fargo is less bullish on the iPhone maker. Earlier this week, he downgraded Apple’s stock to “market perform” due to concerns over gross margins. As AppleInsider notes:
The reason for Um's downgrade is concerns over Apple's gross margins. In particular, he expects that Apple will launch a redesigned "iPhone 6" later this year that will cut into profitability, as has occurred in every new iPhone form factor cycle previously.
Um is also concerned carriers are moving away from subsidizing handset purchases. This “shifting balance of power” could drag down shares of Apple. Wells Fargo's price target range for Apple shares is between $536 and $581. Cupertino's share price begins the year at $561. For more information and analysis on Apple in 2014, see: AppAdvice's Bold Predictions For Apple In 2014Bigger, Thinner iOS Devices Could Dominate Apple's 2014 Product Line, and AT&T CEO: Subsidies On Smartphones Need To End.

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