This morning, Canaccord Genuity analyst T. Michael Walkley joined the parade, repeating his Buy rating on Apple shares (ticker: AAPL), while lifting his price target to $355 from $275. He is particularly bullish on the company’s opportunities to leverage its huge installed base of devices—1.4 billion worldwide—to grow its increasingly varied services business.
Walkley writes in a research note that he believes Apple’s services revenue will continue to outpace the rest of the company’s top line—improving the company’s overall margins in the process.
The analyst also notes that he is “encouraged by the strong demand for the iPhone 11,” and asserts that Apple is likely to maintain its market share lead in premium-tier smartphones through the 5G upgrade cycle. He’s also bullish about the company’s “market leading positions in wearables with Watch and AirPods.”
With $98 billion in net cash, he adds, the company is likely to continue to buy back stock and increase its dividend.
Meanwhile, Evercore ISI analyst Amit Daryanani writes Wednesday morning, in a preview of the coming earnings season, that he sees “high probability of upside bias” in Apple’s December-quarter results, driven by strong demand for both iPhones and AirPods over the holiday season.
He argues the company’s guidance for revenue between $85.5 billion and $89.5 billion looks “extremely conservative.” Street consensus is $88.3 billion; he is projecting $90 billion.
Apple is due to report December-quarter earnings on Jan. 28. Its shares were up 0.5%, at $314.19, in recent trading. After an 86% rally in 2019, the stock is up about 7% so far in 2020. The
is up 2% so far this year.
Write to Eric J. Savitz at firstname.lastname@example.org