Selected stock price target news of the day - September 13, 2023
By: Matthew Otto
Apple’s iPhone 15 Launch: Surprises and Analyst Perspectives
Apple recently unveiled its latest iPhone models, and while the event met expectations, there were some surprises in store. Most notably, Apple did not raise the price for its iPhone 15 Pro as widely anticipated by analysts. However, the starting price for the Pro Max increased by $100. Despite the historical trend of Apple’s stock price rising an average of 5% in the three months following an iPhone release, concerns have arisen about the company’s reliance on iPhone sales to drive its share price higher.
D.A. Davidson analyst Tom Forte has expressed doubts about the potential for Apple’s stock to experience a boost following the iPhone 15 launch. His skepticism stems from Apple’s guidance indicating a revenue decline in the September quarter, despite the iPhone 15’s release on September 22. Additionally, Forte pointed out potential challenges in the Chinese market. As a result, he has reiterated a Neutral rating for Apple’s stock and set a price target of $180.
The opinions of other analysts on this matter vary. KeyBanc analysts consider the event slightly negative for the stock, while Evercore ISI analysts found it mildly disappointing. However, there are positive outlooks as well. Wedbush analyst Dan Ives raised his price target for Apple stock to $240, anticipating a strong upgrade cycle in the upcoming year and an increased adoption of the Pro models, which could raise the company’s average selling price. Citi analysts also see potential benefits in maintaining consistent pricing for the models, especially in a challenging economic environment. They have maintained their Buy rating with a $240 price target.
Analysts Maintain Positive Outlook on Apple Stock
- Needham analyst Laura Martin maintained a Buy rating and her price target at $195.
- Wedbush analyst Daniel Ives reiterated an Outperform rating and his price target of $230.
Analyst Jeriel Ong (DEUTSCHE BANK) currently has the highest performing score on AAPL with 17/18 (94.44%) price target fulfillment ratio. His price targets carry an average of $4.81 (4.75%) potential upside. Apple stock price reaches these price targets on average within 35 days.
GoDaddy Faces Activist Investor Pressure Over Financial Performance
GoDaddy finds itself under scrutiny as activist investor Starboard Value, currently the company’s third-largest shareholder with a 7.8% stake, raises concerns about its financial performance and valuation. Starboard believes that GoDaddy is significantly undervalued and has suggested that the company explore a potential sale if it cannot reverse its financial downturn. The domain registration giant has been contending with a revenue slowdown following the pandemic, coupled with economic challenges such as sticky inflation and rising interest rates that have impacted technology spending.
Furthermore, Starboard Value has highlighted GoDaddy’s failure to meet nearly every target set for the next two years, as outlined during the company’s 2022 investor day. These targets include those related to revenue and adjusted core profit growth. To address these issues, Starboard has advised GoDaddy to take a more objective approach in assessing its potential for revenue growth and to focus on improving profit margins by reducing expenses, especially in areas such as technology and development costs.
Analysts Remain Bullish on GoDaddy, with Price Targets Raised
- Benchmark analyst Mark Zgutowicz reiterated a Buy rating and a $95 price target.
- B. Riley Securities analyst Naved Khan maintained a Buy rating and raised the price target from $102 to $107.
Analyst Naved Khan (TRUIST) currently has the highest performing score on GDDY with 11/18 (61.11%) price target fulfillment ratio. His price targets carry an average of $18.52 (28.31%) potential upside. GoDaddy stock price reaches these price targets on average within 222 days.
Tesla’s Potential Entry and India’s EV Policy
Tesla continues to make waves in the Indian automotive market as it explores opportunities to establish a manufacturing presence in the country. Commerce Minister Piyush Goyal announced that India is formulating a new policy to attract EV manufacturers and promote domestic production, coinciding with Tesla’s ongoing discussions with the Indian government. This development is in line with India’s ambition to accelerate the adoption of electric vehicles and reduce import dependency in the EV sector.
One of the key aspects of this forthcoming policy is the reduction of import taxes for automakers willing to commit to local manufacturing. This incentive aims to encourage EV companies to invest in India, fostering job creation and technological growth. Tesla, known for its commitment to affordable EVs, is planning to introduce a low-cost model tailored to the Indian market, priced at around $24,000, approximately 25% cheaper than its current entry-level model. Moreover, Tesla aims to source components worth billions of dollars from India, further solidifying its commitment to the Indian market. As the Indian government works closely with the industry to shape this policy, it signals a pivotal moment for the EV sector in the country.
Analyst Perspectives Diverge on Tesla’s Future
- UBS analyst Patrick Hummel assigned a Neutral rating with a Price Target of $290.
- RBC Capital analyst Tom Narayan reaffirmed an Outperform rating and a Price Target of $305.
Analyst George Galliers (GOLDMAN) currently has the highest performing score on TSLA with 7/8 (87.5%) price target fulfillment ratio. His price targets carry an average of $-4.27 (-4.03%) potential downside. Tesla stock price reaches these price targets on average within 81 days.