“Despite crashing as much as 10% from a closing high set just over a month ago and losing its $1 trillion market-capitalization crown, tech behemoth Apple Inc. is poised for a big rebound, according to Wedbush Securities analyst Daniel Ives,” Matthew Johnston writes for Investopedia. “‘We continue to encourage investors to see the forest through the trees on this name and view last week as the first step in the ultimate re-rating of the stock higher over the coming years,’ wrote Ives, reaffirming his $310 price target on Apple’s stock, according to Barron’s, implying 48% upside.”
“Urging “investors not to lose sight of the massive metamorphosis on the horizon at Apple being led by the services business,” Ives predicted that Apple’s service offerings, including the App Store, Apple Music, and Apple Pay, would all grow annually by a rate of 20%,” Johnston writes. “He also expects sales from these service businesses to rise more than $50 billion by fiscal year 2020.”
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MacDailyNews Take: Wedbush’s Ives seems to be able to grasp the enormity of Apple’s Services’ potential.