“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.]