Apple CEO Tim Cook speaks during Apple’s annual Worldwide Developers Conference in San Jose, California, June 3, 2019.

Mason Trinca | Reuters

Here are the biggest calls on Wall Street on Monday:

Needham downgraded Apple to ‘buy’ from ‘strong buy’

Needham downgraded the stock but raised its price target to $350 from $280 as it sees Apple transitioning to a “recurring-revenue business model.”

“1) AAPL has direct relationships with 900mm of the wealthiest consumers in the world; 2) AAPL is transitioning to a recurring revenue business model, which is driving multiple expansion; 3) AAPL is indifferent to which apps are most popular on its platform; 4) AAPL is a gatekeeper, so it can require rev shares from all apps; 4) AAPL is a pure play on the trend toward “always-on” mobility; 5) AAPL’s compensation structure is a hidden asset that drives valuation upside; and, 6) AAPL benefits from Network Effects.”

RBC raised its price target on Tesla to $315 to $290

RBC said Tesla’s “bull market is strong” and that it sees no “immediate negative” data point.

“Post 4Q19 deliveries, we raise 2020-22 delivery forecast but believe the stock already discounts a very favorable future that requires near-perfect execution. That being said, we recognize Tesla is a thematic/momentum stock whose price can disconnect from fundamentals for periods of time. The bull narrative is strong and we see no immediate negative data point. PT to $315 from $290 on revised forecast.”

Originally published at CNBC

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