“Apple shares will thrive this year due to tax reform, according to one Wall Street firm,” Tae Kim reports for CNBC.
“Bank of America Merrill Lynch reiterated its buy rating and raised its price target to $220 from $180 for Apple shares, which is 25 percent above Tuesday’s closing price. It is also the highest target among major investment banks that cover Apple,” Kim reports. “The $220 forecast represents a $1.1 trillion market valuation for the company.”
We remain bullish on potential for cash repatriation, lower tax rates, and the potential for positive estimate revisions heading into 2019. A smoother iPhone cycle (no boom-bust) should drive increased stability in earnings, commanding a higher multiple. Bank of America Merrill Lynch analyst Wamsi Mohan
Kim reports, “Only Drexel Hamilton has a higher price target for Apple at $235.”
Read more in the full article here.
MacDailyNews Take: 2018 should be a banner year for Apple if they execute with even a modicum of competence (i.e. regularly update products, ship them when promised, make no major PR gaffes à la batterygate, and get their software quality issues under control).