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.
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.)