Apple shares were up slightly in premarket trading today after RBC Capital analyst Amit Daryanani upped his price target on AAPL from $140 to $155 while maintaining his “Outperform” rating.
RBC “said growth in the technology giant’s services business provided a path to higher market valuations,” Tomi Kilgore reports for MarketWatch.
“Daryanani’s new price target was 12% above the stock’s closing price of $138.99 on Wednesday, and 6.4% above the average target of the 42 analysts surveyed by FactSet of $145.69,” Kilgore reports. “Daryanani outlook for its services business implies it will be a $48 billion to $50 billion business by fiscal 2020. That suggests either healthy growth in average revenue per unit (ARPU) or a ‘sizable” acquisition is coming.'”
Read more in the full article here.
MacDailyNews Take: The growth of iPhone’s installed base alone can double Apple’s Services business’ revenue by 2020. No “sizable acquisition” required.
Note: AAPL at $142.86 per share equals $1000 per share pre-split (2014’s 7:1 split).
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Citi ups Apple price target to $160 on impending iPhone supercycle – March 6, 2017