Shares of Apple suppliers have lagged behind Apple stock so far this year. But that could change soon, Citigroup says, because growth is coming back to Apple.
The 50-plus Apple suppliers that Barron’s tracks — companies that derive a significant portion of sales from Apple — are up about 17.5% year to date. That is in line with the gain of S&P 500, but about 13 percentage points behind Apple stock’s climb.
Citigroup analyst Jim Suva upgraded his rating of shares of contract electronics manufacturer Jabil two notches on Thursday, all the way to Buy from Sell. (Wall Street typically moves stock ratings one notch at a time.) He also boosted his price target to $36 a share — 28% higher than recent trading levels — from $27 previously.
MacDailyNews Take: Perhaps an even better chance for Apple suppliers will be in 2020 after the iPhone 5G ushers in the next super cycle.