Apple Continues to Deliver for Customers and Shareholders

Apple's latest Worldwide Developer Conference did not contain any big reveals for the tech stock - but equity analysts remain confident in the company's prospects

Brian Colello, CPA 9 June, 2015 | 10:40AM
Facebook Twitter LinkedIn

Apple’s (AAPL) recent software and service efforts have focused on both fortifying its successful operating systems, and positioning iOS and the iPhone as a digital hub as the company expands into new end markets and applications.

We view Apple’s announcements at this year’s annual Worldwide Developer Conference as being slanted much more toward the former. We will maintain our $140 fair value estimate, narrow moat and positive moat trend ratings for Apple, and we still view Apple’s shares as modestly undervalued today.

Our initial takeaway is that WWDC hasn’t altered the Apple story or our moat rating. Apple announced many new improvements, but we view them as incremental. In general, we still think that new hardware and services like HomeKit, Apple Watch, and Apple Pay could build additional switching costs over time.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Apple Inc149.32 USD0.46Rating

About Author

Brian Colello, CPA  is a senior stock analyst with Morningstar.