Apple Inc. (NASDAQ:AAPL) surpassed $100 a share on Tuesday, being the first time that the stock rose to that level since June after it performed a seven-for-one stock split. The stock was trading above $600 in May this year just before the split. William Power, a senior researcher at Robert W. Baird, was on CNBC talking about the price move and the potential impact after the much-anticipated launch of iPhone 6. Power covers the wireless communications sector.
Baird has an ‘Outperform’ outlook on the stock of Apple Inc. (NASDAQ:AAPL) and a target price of $105. Power observed that the move in Apple’s stock price was a milestone, but said they have no immediate plan to adjust their target price on the stock following the recent momentum. He went on saying that the stock has had a nice ride over the last couple of years and they certainly like the move on the Street. However, he also pointed that Apple’s market cap has not quite changed for some time now.
Coming on to the anticipated launch of iPhone 6, Power noted that it was possible Apple Inc. (NASDAQ:AAPL) could top the nine million unit sales in the first weekend, which was the number achieved last year. However, he also said such would depend on a number of issues, mainly the supply of the devices.
“If pattern holds it can go on sales a week and a half or so thereafter. I think it would be a bit disappointing if they couldn’t top their number, assuming they have adequate supply,” he stated.
Apple Inc. (NASDAQ:AAPL)’s iPhone 6 is expected to come in two versions based on the size of the display-screen, which is expected to be in the range of 4.7 – 5.5 inches large. There are hopes that the new device would help Apple to grab more market share, especially in places like China, where it is facing intense competition, more so from cheaper devices.
“Let me give you some further perspective. You think about the December quarter, which is really the big quarter for sale, last year they sold 51 million phones and we on the Street were looking close to 60 million, maybe 15% unit growth. That is a very healthy number if they can achieve that,” said Power.
Icahn Capital LP, led by Carl Icahn, owns 52.7 million shares of Apple Inc. (NASDAQ:AAPL) as at the end of the second quarter of 2014. Overland Advisors, managed by Gordy Holterman and Derek Dunn, has 19.4% of its equity portfolio invested in Apple Inc. (NASDAQ:AAPL) holding a total 4.04 million shares.