“Despite Apple’s recent underperformance on Wall Street, one analyst believes there are no less than five reasons investors should buy shares of the iPhone maker,” Thomas Franck reports for CNBC. “Highlighting the company’s 2018 product lineup as well as healthy services revenue, Citigroup analyst Jim Suva told clients that news of sluggish demand should subside throughout the summer months.”
“The analyst reiterated his buy rating on shares of the Cupertino, California-based company as well as his $200 price target, implying 8 percent upside over the next year,” Franck reports. “Apple’s stock is down 2.7 percent over the past month, underperforming the S&P 500, but up more than 9 percent since January.”
Here are Suva’s five reasons to buy Apple stock right now:
1) Promising 2018 Product Lineup
2) Capital Returns
3) Rising Service Revenue, AppleCare+, Apple Music and App Store Growth
4) Enterprise push mid-term and Applewood (aka India and emerging markets)
5) Attractive Valuation Relative to Prior Cycles
Read more, including explanations of each of the five items above, here.
MacDailyNews Take: Hello, trillion-dollar market cap!
(Depending on the number of shares outstanding which is always a moving target given Apple’s record buyback program.)
[Attribution: 9to5Mac. Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
Wow an analyst saying something positive about Apple. Will wonders never cease.
Thats what they expect today. Tomorrow however it will be all doom and gloom again as the Nikkei posts there monthly production cut rehashed article
Amazon and Microsoft will likely reach that elusive $1T market cap before Apple does and that’s a darn shame for Apple believers.
and maybe the 1st to reach monopoly status too, as Amazon announces pursuit of still another biz sector_pharma.
Their grab isn’t slowing down anytime soon.
This administration seems proud of converting America into a Russian oligopoly, the real power and wealth able to monopolize as they wish. All they have to do is kiss the ring of dictator wannabe Trump, and he will personally destroy formerly international competitive markets that the USA set up post WW2. Want an exemption to the unilateral trade barriers Trump’s handlers threw up? That may require a “donation” to the Trump “foundation” to bail out Donny Jr’s real estate fiascos.
Cook of course will not only kiss the ring but whatever parts necessary to keep communist china production going.
Dear “whatever”:
A fool and his reality are soon parted. It’s too bad for you, and us, that you’re already there. Have a nice day.
You 1st sent is just chafe. What follows in similar. Make a cogent statement without the blinding of bias.
You are speaking as if you know these things and I have a suspicion you don’t. If you had that kind of knowledge, I kind of think we’d have heard it from Mueller by now, no?
I guess you make up a new profile for every article you comment on.
Me? Or, the other guy I’ll be when I log in again? Or Whatever as he logs in again to downvote the posts he doesn’t like?
Mdn and all confused: we been over this several times:
Number of shares have no mathematical relevance to market cap..
Its earnings and pe.. thats it.
Isn’t market cap the number of outstanding shares multiplied by the price per share? If a number of shares gets removed then there’s less to multiply with and that results in a lower market cap number. Is my reasoning wrong?
Maybe this can help LB 48
A- Cap =Earnings xPE
Another way to express it is
B- Cap= Share price x number of shares. ( this is what confuses most people)
But What is share price?
C- Share price =(earnings /number of shares) x pe
If i plug in C for share price in B you’ll get :
Cap = ( earnings/number of shares) x(Pe)x (number of shares )
Number of shares cancel out
We are left with Cap = earnings x pe!
Buybacks only effect the share price
As earnings get devided in smaller number of shares..
share price goes up .. but remember that now there are less total shares too..
The opposite is true too.
If a company issues shares the earnings get divided in more shares.. share price drops..
But in this case now there are more shares.
So net effect is mathematically neutral.
( 2nd example can apply to stock splits)
Buybacks divide the whole pie (cap) in less pieces , larger pieces ( higher shares price ) but dont change the size of the pie.
What makes the pie ( cap) bigger is Earnings and pe multiple ( which is the psychological factor )
Anyone who downvotes the above.. Has no business being in the market..
As they have NO CLUE!
What’s somewhat disappointing is how Facebook is getting price targets of $250 a share despite all the global privacy controversies. It’s quite amazing how Facebook can easily generate huge profits out of thin air while Apple struggles to do so with its relatively vast ecosystem. Facebook has already reached $200 without much trouble at all. Data harvesting is a truly profitable business especially when there are no controls to limit activity.