Apple Inc. Started at “Buy” at Deutsche Bank (AAPL)

On Wednesday morning, Deutsche Bank initiated coverage on Apple Inc. (AAPL) with a “Buy” rating due to the company’s strong position in smartphones and tablets.

Deutsche Bank started Apple with a price target of $650, which suggests that the company’s stock will rise by 22.6% from its Wednesday closing price of $530.32. DB analyst Sherri Scribner sees higher sales with the introduction of the new iPhone, and expects that the company will see long term growth due to new products.

Scribner had the following comments: “iPhones and iPad represented 72% of Apple's sales in 2013 and are central to the company's performance. While growth is expected to decelerate in both markets, industry growth remains robust, with smartphones expected to grow units in the high teens for the foreseeable future and tablets expected to grow in the mid-20%s. We expect iPhones and iPads to be the key growth driver for Apple over the next year, with further upside in iPhones coming from a larger screen sized phone and further penetration in emerging markets.”

In addition to the company’s smartphone and tablet dominance, Scribner also sees upside with products like the Apple TV set and “Smartwatch.” Deutsche Bank expects Apple to have FY2014 EPS of $46.50.

Apple stock was up 98 cents, or 0.18%, in pre-market trading. YTD, the company’s stock is down 4.12%.

AAPL Dividend Snapshot

As of Market Close on April 9, 2014

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