Two prominent analysts raised Apple’s target price friday to near Wall Street’s high after the company’s share price broke through $300. Bank of America’s Wamsi Mohan and RBC Capital Markets’ Robert Muller both raised the consumer technology giant’s target price to $330 a share, about 10 percent higher than Thursday’s close.
Both investment banks cited strong demand for the iPhone as their reason for bullish ness for Apple. IN A NOTE TO CUSTOMERS, RBC, WHICH HAD PREVIOUSLY TARGETED $295 A SHARE, SAID THE IPHONE’S LATEST PHONE HAS MORE SOCIAL MEDIA EXPOSURE THAN OTHER VERSIONS.
In short, there is growing consumer interest in the iPhone 11 and iPhone 11 Pro, which will support Apple’s December quarter results, Muller said in the report.
Bank of America, which had previously set a target price of $290 for Apple, expects strong performance in all of its business units, including the App Store.
In the long run, Apple will benefit from (1) 5G promotion, (2) strong demand for wearables products, and (3) continued year-on-year growth in gross margin stake, which will help share prices continue to strengthen,’ Bank of America said in a report.
Bank of America estimates that Apple App Store’s revenue in the most recent quarter was $4.2 billion, up 19 percent from a year earlier.
Apple was one of the best-performing stocks in 2019, up more than 80 percent. (Chinese Investment Network)