Apple Inc.’s price target was raised to $350 from $280 at Needham, which wrote that the iPhone maker had a number of tailwinds in 2020 that could help it extend last year’s strong rally…
Needham analyst Laura Martin wrote that Apple was on her conviction list for a second straight year, noting the company’s direct relationships with 900 million of “the wealthiest consumers in the world.”
Needham also touted the company’s transition toward a recurring-revenue business model, “which is driving multiple expansion,” as well as its compensation structure, “a hidden asset that drives valuation upside.”
JPMorgan analyst Samik Chatterjee sees “further upside for long-term investors” given a higher percentage of earnings derived from Apple’s services business, along with 5G iPhones expected later this year. Also on Monday, Bernstein raised its price target on Apple to $300 from $250
MacDailyNews Take: As Apple’s Services story becomes clear to the analysts and investors, perhaps AAPL will finally move toward being somewhat fairly valued for a change!