“As Apple continues to make new 52-week highs, and noted analysts are raising their price targets, investors need to consider how much room the stock still has to run higher,” Douglas Ehrman writes for Seeking Alpha. “As launch dates for the iPhone 6, the next generation of iPads, and the potential introduction of the iWatch begin to firm up, the typical Apple buzz is already beginning.”
“Couple new device news with a solid earning call last week, and the stock looks poised to move significantly higher,” Ehrman writes. “Given Apple’s typical pattern surrounding the release of each major iPhone redesign, establishing a position in the stock, especially at sub-$100 levels should be profitable.”
“As is too frequently the case with bellwethers, Apple’s solid third quarter results were overshadowed by consensus estimates. The company reported earnings of $1.28 per share on revenues of $37.4 billion, but the street had been looking for $38 billion. Similarly, Apple sold 35.2 million iPhones, falling short of the 36 million that were expected,” Ehrman writes. “This is not to suggest that analyst estimates should be completely overlooked, but selling enough iPhones to equate to more than 10% of all people living in the U.S. seems to exceed ‘”unspectacular,’ which is how the number was described.”
Read more in the full article here.