Cowen picks Apple stock as one of its ‘favorite ideas’ in 2020, ups price target to $325

Investment research firm Cowen is boosting its Apple price target on near-term momentum in several operating segments and a belief that market share losses in China could be offset by gains in India.

AppleInsider:

In a research note issued to clients on Tuesday, analyst Krish Sankar pointed to upcoming iPhone releases, booming wireless sales and swelling services revenues as some of the near-term catalysts expected to drive shares higher…

Sankar expects growth in Apple services of roughly 16% to $57 billion during 2020. Apple TV+ revenues are estimated to contribute just half a billion to that figure in 2020, while Apple spends an estimated $4 billion on content. The financial snapshot of the segment should begin to improve the following year with the expiration of Apple TV+ free trials, helping drive segment revenues up threefold to $1.5B. By 2021, he expects over 50% of services revenues to come from ongoing subscriptions.

Sankar maintained his Outperform rating and EPS forecasts of $13.54 and $15.65 for fiscal 2020 and 2021, respectively, but raised his price target to $325 from $290…

MacDailyNews Take: $2 billion market cap, here we come! (Eventually.)

3 Comments

  1. …and in the Colin Gillis Wannabe camp, Jun Zhang still has his $150 price target and Sell rating. At least Toni Sacconaghi finally admitted he’s been wrong all along and he and his customers have missed AAPL’s tremendous rise

  2. You though professional analyst like Tony Sacconaghi knows what he’s doing. But it turns out it is as not it is. He is even less than an average investors. So by all due diligent, do the homeworks and listen to Jim Cramer “Own Apple, don’t trade Apple”.

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