10 Things That Can Go Right for Apple Stock, According to an Analyst
While Apple stock has been in free fall in recent months, Wedbush Securities believes there are still many things that could go right for the smartphone maker next year.
The firm’s analyst Daniel Ives reiterated his Outperform rating for Apple stock, citing the value of its iPhone ecosystem and services businesses.
“We encourage investors to value the core iPhone franchise and golden jewel services business over the next few years instead of listening to the bears piling on mentality, which will rule the name/stock in the near term,” he wrote on Monday.
Ives reaffirmed his $275 12-month price target for the company’s shares.
Apple stock was up slightly to $150.91 on Monday. Its shares have declined about 30% since the end of October as concerns have mounted about weak demand for the iPhone models released this fall.
Here are some brief excerpts from Ives’ Top 10 Christmas Wish List for Apple Investors for 2019: 1. “iPhone units shipped for FY19 is north of 200 million.”
The current consensus estimate for fiscal 2019 iPhone units sales is 212 million, according to FactSet. 2. “China consumer iPhone upgrades for FY19 hit 30 million units.” 3. “Settle the Qualcomm patent issue once and for all.”
4. “Services business growth trajectory hits revenue of $45 billion+ for FY19.”
5. “More transparency and metrics around the services business.”
6. “Finally Cook & Co. do a meaningful acquisition.”
Ives speculates Apple could buy a major content company or movie studio.
7. “Announce an accelerated buyback program.”
8. “Lowering prices on some OLED models to ~$600 versus the current $750 base price.”
9. “China trade war settles in early 2019 with no disruption to the flagship Foxconn factory.”
10. “Announce a strategic partnership with Tesla.”
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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