Wells Fargo to resume coverage of Apple with an Outperform rating

Wells Fargo to resume coverage of Apple with an Outperform rating
Wells Fargo has resumed coverage of Apple's stock with an "Outperform" rating. The equity research division of the well known banking company said that it came to that opinion because it sees Apple's shares as being undervalued and believes that the Apple iPhone will be the "biggest product launch in company and industry history." Um places the valuation of Apple's shares at $640-$660 versus the current stock price of $572.03.

Wells Fargo has found a pattern that could help you make a quick buck on Apple's stock. The bank discovered that the stock runs up an average 23% each year from the time the new Apple iPhone is announced to the announcement of the first quarterly earnings report after the phone's introduction. Um sees a major makeover for Apple's iconic smartphone with a larger screen, a form factor redesign and LTE connectivity. He sees the launch boosted by faster than usual carrier rollouts of the phone and a buzz about the handset being one of the last products that the late Steve Jobs had a hand in designing.

Wells Fargo sees further unit growth for the iPhone which is important considering that the device accounted for 43% of Apple's revenue and 56% of its gross profit last year. There are some risks, according to the bank. Competition or low demand could lead to the drop in the average selling price of the Apple iPhone, or growth could slow due to tougher comparisons with last year's strong numbers. Other risks include a weaker economy, shortages of parts, higher expenses and its numerous legal disputes.

source: AppleInsider


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20 Comments

1. gallitoking

Posts: 4721; Member since: May 17, 2011

Wells fargo knows their stuff....

17. good2great

Posts: 1042; Member since: Feb 22, 2012

lol... its funny that some one can make a positive comment on an article and get thumbed down... this should be screen captured and filed for future proof that its anti-apple people that hate you "not for what you say" but because you support something they dont... hahaha... they hate you bro

20. gallitoking

Posts: 4721; Member since: May 17, 2011

I know they hate me thats why I dont believe in thumbs up or down.. is mostly popularity here..

2. mas11

Posts: 1034; Member since: Mar 30, 2012

Exhibit 12 shows just how overpriced the iPhone is.

3. eli_waeterling

Posts: 22; Member since: Jun 07, 2009

Exhibit 11 and 12, what do they mean by "Portables?"

4. mas11

Posts: 1034; Member since: Mar 30, 2012

Probably Macbooks

5. bayusuputra

Posts: 963; Member since: Feb 12, 2012

"We believe Apple's combination of brand, innovation, and ecosystem are unmatched" ROFLMAO!!!

6. mas11

Posts: 1034; Member since: Mar 30, 2012

Where is the innovation? I think brand is the main reason Apple makes so much $$$.

8. taco50

Posts: 5506; Member since: Oct 08, 2009

Thanks to Apple's innovation you have android

11. Mitchel

Posts: 228; Member since: May 25, 2012

Thanks to Motorola's innovation, you have iPhone.

16. mas11

Posts: 1034; Member since: Mar 30, 2012

Yep without Motorola there wouldn't be any cell phones at all. Heck Apple even steals from Motorola so let me repeat, what innovation? http://www.phonearena.com/news/Apple-found-to-violate-a-Motorola-patent_id29434

18. iamcc

Posts: 1319; Member since: Oct 07, 2011

Oh shut up you idiot.

9. taco50

Posts: 5506; Member since: Oct 08, 2009

Clearly an out of touch fandroid

7. AppleConspiracy

Posts: 637; Member since: Oct 18, 2011

So much energy has been accumulated around next iPhone expectations that this will surely be the biggest and greatest opening in the history of human kind and Apple will become the most valuable company in history. Milions of people will go on streets to wait for their iConic phone, but only God knows that they should be on streets, making Revolution against capitalism. But they are not interested in that. Those are not humans anymore, but robots. This will mark the End of History.

10. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

You mean the Wells Fargo that needed the biggest bailout from the government, $25B? Yeah, they're they guys I want to listen to about finances...

12. beardown

Posts: 4; Member since: Jan 26, 2010

Actually - WF did not need it at all they were more forced to take the bailout as the gov't

13. beardown

Posts: 4; Member since: Jan 26, 2010

by the gov't

14. TheRetroReplay

Posts: 256; Member since: Mar 20, 2012

It's amazing how Apple can get such praise when they release the same under powered product every year while the competition flies past them.

15. good2great

Posts: 1042; Member since: Feb 22, 2012

the definition of POWER sir... we can hate them all day... but reality is... apple is BOSS

19. GENARAL-LEVY

Posts: 34; Member since: Jun 19, 2012

We feel sorry for all those brainwashed innocent civilians. ... Which the eyes of truth, created those unwise rejects. Which made Apple what it is today.!!!!

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