Share of Apple are up 0.5% in Wednesday morning trading after RBC Capital Markets’ analyst Robert Muller boosted his Apple price target to $390 from $345.
“While Apple’s significant capital return program is well known by the market, we do not believe the market is giving enough credit for the financial impact (or, if it is, then organic growth is being understated, in our view),” he wrote. Muller estimates that if Apple sustains its current pace of about $70 billion in annual stock repurchases, it could see roughly 4% annual growth in earnings per share over the next few years even assuming that the company sees no organic growth. “What this implies, to us, is that the potential uplift from the upcoming 5G upgrade cycle is being discounted by the market…”
MacDailyNews Take: Obviously, given the slew of Apple price target increases and the stock price itself, there’s nothing better for Apple shareholders than a massive Black Swan-induced global recession and worldwide pandemic. Hey, whatever — this year we’ll take whatever good news we can get!