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Wells Fargo to resume coverage of Apple with an Outperform rating

Wells Fargo to resume coverage of Apple with an Outperform rating

Posted: 27 Jun 2012, 22:37, by Alan F.

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Wells Fargo to resume coverage of Apple with an Outperform rating

"We believe Apple's combination of brand, innovation, and ecosystem are unmatched and see the company as well-positioned to continue to take value share in its core smartphone, tablet, and PC markets."-Maynard Um, WellsFargo

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.

The Apple iPhone is key to the company's growth

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

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posted on 27 Jun 2012, 22:52 2

1. gallitoking (Posts: 4721; Member since: 17 May 2011)

Wells fargo knows their stuff....

posted on 28 Jun 2012, 10:54

17. good2great (Posts: 1042; Member since: 22 Feb 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

posted on 28 Jun 2012, 14:22

20. gallitoking (Posts: 4721; Member since: 17 May 2011)

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

posted on 27 Jun 2012, 23:50 4

2. mas11 (Posts: 1034; Member since: 30 Mar 2012)

Exhibit 12 shows just how overpriced the iPhone is.

posted on 28 Jun 2012, 00:14 1

3. eli_waeterling (Posts: 22; Member since: 07 Jun 2009)

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

posted on 28 Jun 2012, 00:17 1

4. mas11 (Posts: 1034; Member since: 30 Mar 2012)

Probably Macbooks

posted on 28 Jun 2012, 00:17 2

5. bayusuputra (Posts: 963; Member since: 12 Feb 2012)

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

ROFLMAO!!!

posted on 28 Jun 2012, 00:22 3

6. mas11 (Posts: 1034; Member since: 30 Mar 2012)

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

posted on 28 Jun 2012, 02:22 1

8. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)

Thanks to Apple's innovation you have android

posted on 28 Jun 2012, 03:57 3

11. Mitchel (Posts: 228; Member since: 25 May 2012)

Thanks to Motorola's innovation, you have iPhone.

posted on 28 Jun 2012, 10:37

16. mas11 (Posts: 1034; Member since: 30 Mar 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

posted on 28 Jun 2012, 11:11 1

18. iamcc (Posts: 1319; Member since: 07 Oct 2011)

Oh shut up you idiot.

posted on 28 Jun 2012, 02:22 1

9. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)

Clearly an out of touch fandroid

posted on 28 Jun 2012, 02:03 3

7. AppleConspiracy (Posts: 637; Member since: 18 Oct 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.

posted on 28 Jun 2012, 03:21 2

10. roscuthiii (Posts: 2241; Member since: 18 Jul 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...

posted on 28 Jun 2012, 09:33 1

12. beardown (Posts: 4; Member since: 26 Jan 2010)

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

posted on 28 Jun 2012, 09:34

13. beardown (Posts: 4; Member since: 26 Jan 2010)

by the gov't

posted on 28 Jun 2012, 09:46

14. TheRetroReplay (Posts: 254; Member since: 20 Mar 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.

posted on 28 Jun 2012, 10:32

15. good2great (Posts: 1042; Member since: 22 Feb 2012)

the definition of POWER sir...

we can hate them all day... but reality is... apple is BOSS

posted on 28 Jun 2012, 11:44

19. GENARAL-LEVY (banned) (Posts: 34; Member since: 19 Jun 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.!!!!