“Apple shares will rally because the company will benefit from falling component costs for its phones, according to Citi Research,” Tae Kim reports for CNBC. “The firm raised its price target to $265 from $230 for Apple shares, predicting the smartphone maker will report earnings per share above expectations next year. The new forecast represents 18 percent upside to Friday’s closing price. Citi also reiterated its buy rating for the stock.”
“The analyst [Jim Suva] said memory represents 10 percent to 15 percent of the component costs in base iPhone models. But when a consumer buys a higher memory configuration that costs $100 more, it costs Apple only an incremental $20, he said. He noted flash memory prices are down 18 percent since March,” Kim reports. “‘Our checks suggest solid demand for iPhone XS & XS MAX and importantly most consumers opting for higher memory iPhone configurations,’ the analyst said.”
Kim reports, “Suva raised his Apple fiscal 2019 earnings per share estimate to $14.43 from $13.92 versus the $13.61 Wall Street consensus.”
Read more in the full article here.
MacDailyNews Take: So far today, in Columbus Day trading, Appel shares a trading slightly lower, down 0.66%.
Note: Today is Columbus Day and, as we spend the day with family and friends, posting will be limited. We will return to our regular posting schedule tomorrow.