A woman looks at the screen of her mobile phone in front of an Apple logo outside its store in downtown Shanghai September 10, 2013. Apple Inc is expected to introduce a cheaper version of the iPhone on Tuesday, bringing one of the industry's costliest smartphones within reach of the masses in poorer emerging markets. The world's most valuable technology company, which many expect to unveil an iPhone 5C in several colors alongside the latest high-end iPhone 5S, is trying to beat back rivals like Samsung Electronics Co Ltd and Huawei Technologies Co Ltd in markets like India and China, where it is fast losing ground.Reuters
Inside the Market's roundup of some of today's key analyst actions. This post will be updated with more analyst commentary during the trading day.
BMO Nesbitt Burns analyst Keith Bachman has raised his price target on Apple Inc. after the bank conducted a consumer survey about its products in the U.S., U.K., and Germany and hosted a focus group in the U.S.
"Participants have modestly lower enthusiasm for the Apple brand, a strong preference for the 5s (66 per cent for the 5s vs. 18 per cent for the 5c and 16 per cent for the 4s) and assign a small value for commonality of brand between smartphones, tablets, and computers," he said.
The 5s is Apple's latest high-end iPhone featuring finger-print technology, while the 5c is a less expensive version with a plastic housing. The iPhone 4s is an earlier smartphone that in some markets can be had for zero dollars when on contract with a telecom provider.
"We are lowering our iPhone unit estimate, while raising our iPhone ASPs (average selling prices). For example, we now assume iPhone unit growth of 10 per cent in fiscal year 2014 and 3 per cent in fiscal year 2015, compared to our previous forecast of 13 per cent and 11 per cent, respectively. We are also lowering our iPad forecast as 1) we think demand continues to trend weaker; and 2) we are now including a large-screen iPhone in our forecast in mid calendar year 2014," he said in a research note.
He also raised his fiscal year 2014 earnings per share estimate to $42.11 from $40.25, which it closer to the consensus of $42.95.
Target: Mr. Bachman raised his price target to $508 (U.S.) from $480 and reiterated an "outperform" rating.
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Canaccord Genuity analyst Robert Young sees greater upside for shares in Sandvine Corp. after the developer of broadband network management products released better-than-expected earnings per share on Thursday thanks to strong margins and surprisingly lower operating expenditures.
"We continue to like SVC's prospects over the near term with revitalized products, engaged channel and a new service creation/business intelligence product cycle," Mr. Young said in a research note. "With the growth, we see margin expansion as Sandvine shifts towards a software model and operating leverage as the company holds operating expenditures constant."
Target: Mr. Young raised his price target to $3 (Canadian) from $2.50 and reiterated a "buy" rating.
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Raymond James analyst Andrew Bradford has boosted his target price on Calfrac Well Services Ltd. after the company was awarded this week a three-year pumping contract in Argentina from oil company YPF S.A.
"Calfrac hasn't disclosed the anticipated scale or scope of the YPF contract, though we do know that Calfrac doesn't need to add to the 36,000 fracturing horsepower, cementing or coil tubing capacity it currently has in-country," Mr. Bradford said in a research note. "Based on this, we think it's reasonable to expect about $35 mln in annual pumping revenue from the YPF contract at about 20-25 per cent EBITDA margins, though a multitude of factors could easily influence revenue higher or lower over the life of the contract."
Target: Mr. Bradford raised his target to $35.50 (Canadian) from $35 and maintained a "market perform" rating.
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In other analyst actions today:
BMO Nesbitt Burns raised its price target on Air Canada to $5 from $4 and reiterated an "outperform" rating. CIBC raised its target to $5 from $4.75 and maintained a "sector outperformer" rating.
BMO Nesbitt Burns raised its price target on Harley-Davidson to $74 (U.S.) from $65 and reiterated an "outperform" rating.
BMO Nesbitt Burns upgraded Alliance Data Systems to "outperform" from "market perform" and raised its price target to $240 (U.S.) from $195.
Credit Suisse downgraded Wynn Resorts to "neutral" from "outperform" but raised his price target to $160 (U.S.) from $149.
Credit Suisse upgraded Northern Tier Energy LP to "outperform" from "neutral" and raised his price target to $29 (U.S.) from $28.
BMO Nesbitt Burns upgraded Harte-Hanks to "outperform" from "market perform" and raised its price target to $10 (U.S.) from $9.
Sterne Agee raised its price target on Facebook to $58 (U.S.) from $50 and maintained a "buy" rating.
Raymond James upgraded ExxonMobil to "strong buy" from "outperform" with a price target of $98 (U.S.).
Evercore Partners initiated coverage on JDS Uniphase with an "equal weight" rating and $17 (U.S.) price target.
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Darcy Keith