Analyst Moves for December 8: What They Mean for Mutual Fund Investors (AAPL, SBUX, V, MA)

On Monday morning, there were several big-name analyst moves that were announced. Below are the most important analyst moves for mutual fund investors.

Wall Street has been boosting price targets on Apple over the last few weeks. This morning, two more firms lifted the company’s price target.

• Citigroup raised its price target from $120 to $135 (suggesting a 14% increase). Analysts at the firm see higher demands for premium products, which would benefit margins and profits.
• BMO Capital boosted Apple’s price target from $113 to $123 (suggesting a 7% increase). The firm sees higher demand for iPhone 6.

Mutual Funds to Watch

Investors seeking exposure to Apple may also consider a mutual fund investment. The funds below currently own the largest stakes in Apple.

Goldman Sachs has resumed coverage on Starbucks (SBUX) with a “Conviction Buy” rating and a $95 price target.

According to the analyst: “As the least expensive QSR on a PEG basis and with potential upside to F1Q comp trends, we view this as an attractive entry point for the long-term story – the sole concept offering “real food” with QSR-style ubiquity and convenience.”

Mutual Funds to Watch

Investors seeking exposure to SBUX may also consider a mutual fund investment. Below are three funds that currently have the largest stakes in SBUX.

Nomura Securities has maintained its “Buy” ratings on Visa (V) and Mastercard (MA).

• Visa’s price target has been raised from $251 to $299 (suggesting a 13% upside).
• Mastercard’s price target was increased from $93 to $106 (suggesting a 19% upside).

The analyst commented: “We show that the probability of an earnings surprise (either a beat or a miss) is normally distributed across all of the companies in the S&P 500. In contrast to the S&P 500, MA’s returns are not normally distributed; rather they are positively skewed, meaning that the distribution is distorted to the right owing to the number of positive surprises significantly outnumbering negative ones. V’s returns are also not normally distributed; instead, the distribution of V’s surprise history is more tightly clustered and peaked around the mean. Distributions that are more peaked than normal reflect a lower likelihood of extreme outcomes relative to a normal distribution. We have revisited our outlook in the light of recent developments and are raising our target prices to reflect enhanced confidence in the repeatability and sustainability of mid-to-high teens EPS growth for both payment networks. We continue to like the risk vs reward trade-off inherent in owning V and MA shares at current levels.”

Mutual Funds to Watch: Visa

The funds below currently own the largest stakes in Visa. These funds can be considered an investment alternative to purchasing the individual stock.

Mutual Funds to Watch: Mastercard

The funds below currently have the largest stakes in Mastercard.