Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Apple's electric car plans are key for big upgrade from UBS

% of readers think this story is Fact. Add your two cents.


Apple Inc’s (NASDAQ:AAPL) anticipated entry into the automotive market should see it grab around 8% of the global electric vehicle market in a decade, UBS said as it took a much more bullish view of the iphone maker.

Although Apple is by no means the first mover into battery electric vehicles (BEVs), its significant resources should enable the company to be a “fast follower” in time to participate in the steep portion of the expected surge in consumer adoption in coming years, similar to its launch of the iPhone in 2007, the Swiss bank said.

Based on Apple’s platform strategy and market share in other markets, it should be able to capture at least a 5% share of global BEV units in 10 years, UBS said, with its base-case forecast being for an 8% market share with operating margins approaching 15%.

The combination of its technological capability and its customer retention ability, “indicates customer satisfaction remains high for Apple products [and] suggests Apple’s brand equity should drive an S-curve adoption in the BEV market”, said analyst David Vogt in a note to clients.

READ: VW is ‘top candidate’ for Apple Car partnership

Apple has geared up over several years for an entry into the BEV market, investing in self-driving car licenses and LiDAR patents. The company is expected to team up with an established car manufacturer but has seemingly found it difficult to agree terms with several potential partners. 

The “real” option value of Apple’s move into the BEV space is worth at least an incremental $14 share, said Vogt.

Furthermore, UBS’s research in the mobile phone market indicates to Vogt that the iPhone faces a more stable long-term demand backdrop, with better average selling prices.

Putting all this together, UBS upgraded Apple to ‘buy’ from ‘neutral’ and raised its share price target to US$142 from US$115.

From a timing perspective, the analyst said this upgrade “should also capture the relative and absolute outperformance that typically accrues to Apple shares 180 days prior to fall iPhone launches”.

He noted that, apart from last year, since 2013 Apple shares have increased 15% in the 6-month window leading up to a September launch, compared to 5% for the S&P 500.

By comparison, six months post launch, Apple’s share price return is nearer to 7% relative to the a 3% return for the S&P 500.

Story by ProactiveInvestors



Source: http://www.proactiveinvestors.com/companies/news/945471/apple-s-electric-car-plans-are-key-for-big-upgrade-from-ubs-945471.html


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST


Order by Phone at 888-809-8385 or online at https://www.herbanomic.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse
Loading...

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

MOST RECENT
Load more ...

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.