FBR securities may be the most bullish company out there, at least when it comes to the darlings of the tech market. In new reports on Apple Inc. (NASDAQ:AAPL) and Netflix Inc (NASDAQ:NFLX) the company has substantially raised its price target on the companies, putting an upward pressure on the shares of both.
Both reports were released on Thursday. The Netflix estimates put a price target of $900 on the video-streaming service, a doubling of last week's share price. The Apple report, released yesterday afternoon, put a price target of $185 on the Cupertino company's shares, giving the company a prospective valuation of more than $1 trillion.
FBR drives Netflix upward
With a $900 share price Netflix would be worth approximately $54 billion, an incredible valuation for a company that doesn't yet make a profit. The FBR analyst said that his valuation was based on a breakdown of the company's business with international and domestic separated.
Barton Crockett, the analyst who authored the report on Netflix, says that the company's incredibly high level of consumer satisfaction combined with ambitious plans to expand globally will bring it 180 million subscribers by the end of 2020. Shares in Netflix moved up by more than 18% on Thursday's market in the wake of the FBR report.
Apple gets higher price targets
The Apple price target assigned by the FBR analysts isn't actually all that unusual given the recent movement in analyst estimates for the company. With the resounding success of the iPhone 6 now seemingly assured and the Apple Watch after securing a launch that was at least serviceable, and incredible depending on who you ask, analysts are more confident in the future of Tim Cook's company than ever.
Dan Ives, Managing Director at FBR, is backed by Brian White from Cantor Fitzgerald, who has a $180 price target on Apple, Katy Huberty from Morgan Stanley who sees the company going to $160 in the next twelve months, and and Trip Chowdhry of Global Equities Research with a target of $176 on Apple shares.
$185 is certainly on the high side, but as we've seen from the company's Netflix report, it's not afraid to call big when it sees big movements coming. Whether the call on Apple and Netflix are likely to be reflected in their share prices is anyone's guess, but it's clear that FBR is bullish on the tech market as a whole.
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