Verizon (VZ) Smartphone Activations Up 14%, Positive for Apple (AAPL) - Stifel

Stifel analyst Aaron Rakers weighed in on Apple (NASDAQ: AAPL) following Verizon's (NYSE: VZ) results this morning, with smartphone activation up 14% year-over-year and Edge uptake continuing.

"While Verizon’s press release / presentation again does not specifically disclose its 2Q15 smartphone activations, the company’s investor presentation would leave us to estimate ~9-10 million total smartphone activations during the quarter, up from an estimated 8-9 million in the prior quarter and from the reported 8.3 million in the year ago quarter," Rakers commented. "The mid-point would imply approximately 14% yr/yr growth, which compares to 11%, 17%, 35%, and 12% yr/yr growth in 2Q14, 3Q14, 4Q14, and 1Q15, respectively"

Further, Raker noted Verizon reported that Edge accounted for ~49% of the phone activations during 2Q15, a significant increase from the 18%, 12%, 25%, and 39% reported in 2Q14, 3Q14, 4Q14, 1Q15, respectively. The company expects this to increase to 60% during the September quarter.

The firm maintained a Buy rating and price target of $150 on AAPL.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $132.07 yesterday.

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