Shares of Apple, Inc. (AAPL) have seen a nice run lately, climbing about 8% over the past month. And investors have several catalysts to thank. Not the least of which is the speculation about what the tech giant may say and reveal at its spring product launch on Monday at Apple’s headquarters in Cupertino, CA.
AAPL shares closed Friday at $105.92, up 0.11%, translating to a rise of 3.5% from the prior week’s close of $102.26. The shares appear to see some resistance around the $106.50 area, a level Apple stock reached three times last week, only to fall back below $106. What Apple says and or reveals Monday may remove that ceiling, sending the shares higher. What it fails to say, however, can have an opposite effect.
What to Expect at the Event?
Having realistic expectations about the event is the key to determine what to do with your Apple shares. But if you’re a long-term investor, do nothing, and you’ll be fine. However, for investors with a shorter-term horizon and traders who are looking to play a near-term swing, Monday’s stock action, and knowing what to do about it, can prove to be excruciating. (See also:Apple Will ‘Loop Us In’ on a New, Tiny iPhone Monday.)
Oppenheimer analyst Andrew Uerkwitz, who has an outperform rating on AAPL stock and a $120 price target had this to say: “While we expect to see several ‘under the hood’ improvements across devices, we are not expecting the same exuberance as last year when Apple shared final details of the Apple Watch. Moreover, we worry investors will find the next several Apple media events underwhelming.”
Apple is expected to launch a smaller 4-inch iPhone, which will replace the iPhone 5S. “We believe the device will be used as an opportunity for Apple to expand into lower cost emerging regions where the company has very low market share,” S&P Capital IQ analyst Angelo Zino said in a report Tuesday. Zino has a positive rating on Apple shares with a 12-month price target of $130.
Apple is also expected to unveil its third-generation 9.7-inch iPad Air. Analysts aren’t excited about the product given the category has posted declines for several quarters. “We do not expect the updates to materially change our outlook for iPad units, which seem likely to continue declining through fiscal 2016, but at a moderating rate,” stated Pacific Crest Securities analyst Andy Hargreaves in a note last Thursday.