“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.
Breaking Out
Apple’s stock broke out of a bullish technical pattern – known as a wedge – at the end of September. The stock has also risen recently above another level of technical resistance at around $230. Given the breakout, the stock is in a strong position to
rise about 10% to $255. That’s where the stock will hit its next level of technical resistance. Long AAPL. GLTA.
It would be absolutely fantastic if Apple were to even hit $250 sometime next year. I almost can’t believe it. Even though Amazon makes Apple look like crap (in terms of constant share price gains), Apple is still doing an amazing job with its current share price gains AND respectable dividends.
$265 price target! As Capt. Picard repeatedly said on the Enterprise’s bridge, “Make it so, No. 1.” Damn, that would really be sweet.