Credit Suisse predicts Apple stock ‘super cycle’ on strength of 10th anniversary iPhone in 2017

“Credit Suisse told investors this week that it expects Apple to see a ‘muted’ upgrade cycle for the anticipated ‘iPhone 7,’ widely expected to launch in September,” David Silverberg reports for AppleInsider. “Instead, analyst Kulbinder Garcha has set his sights on the 2017 iPhone, which is rumored to have a major redesign coinciding with the product’s 10-year anniversary.”

“Though Garcha maintained a $150 price target and ‘outperform’ rating for shares of AAPL, he did cut his calendar year 2016 estimate to $7.80, and revised his calendar year 2017 EPS estimate downward by 5 percent to $9.67,” Silverberg reports. “But a major redesign for the iPhone in 2017 has Garcha eyeing EPS of $12.32 in 2018.”

“Significant innovations are expected to be pushed out to the 2017 iPhone, which Garcha predicted will break convention and be named an ‘iPhone 8,’ rather than a ‘7s,’ Silverberg reports. “Rumors have suggested the 2017 iPhone will feature a curved glass case housing a 5.8-inch AMOLED display. It’s also been said that Apple could embed many feature — including the Touch ID sensor, FaceTime camera, and speaker — into the display itself.”

Read more in the full article here.

MacDailyNews Take: The lower the expectations are set for iPhone 7, the more spectacularly they will be exceeded.


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