Apple Analysts Raise Price Targets, iPhone Still Driving Bullishness Months After Release
Apple Inc.'s (NASDAQ: AAPL) latest iPhone is still generating excitement a couple months after its fall release, leading two sell-side analysts to boost price expectations on the stock.
The Analysts
RBC Capital Markets analyst Robert Muller raised the price target on Apple from $295 to $330 and maintained an Outperform rating.
Bank of America's Wamsi Mohan reiterated a Buy rating and raised the target price from $290 to $330.
The Theses
Both analysts cited higher customer interest and satisfaction with Apple's new iPhones, and increasing interest in AirPods.
Muller said iPhone mentions on social media spiked in September as expected with the new phone release, but noted that post-release interest remained higher for longer through the end of the year. Positive sentiments on social media have also remained high months after the release.
"A central tenet of our positive AAPL outlook is the ability to drive repeat purchases, and positive social media mentions bolster our argument," Muller wrote in a note.
Analysts also cited strong first quarter app store growth (19%, year-over-year), and growth in China.
"Current data points suggest continued revenue strength for Apple," Mohan wrote in a note.
Price Action
Apple's stock was drug down by the concerns in the overall market from Thursday night's U.S. airstrike that killed a top Iranian official in Iraq.
Apple shares were down 1% to $297.86 at time of publication.
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Photo courtesy of Apple.
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Jan 2020 | Maintains | Buy | ||
Jan 2020 | Maintains | Outperform | ||
Dec 2019 | Maintains | Outperform |
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