In 2020, Apple, at least, has had a spectacular year, with AAPL stock up 77%, increasing the company’s valuation by more than $900 billion.
And there should be more good news to come in 2021, both for the company and the stock.
So says Citigroup analyst Jim Suva, who Friday morning took a fresh look at Apple shares (AAPL) and reiterated his Buy rating, lifting his target price to $150 from $125. (The stock is now a tad above his old target.) He offers up a list of five reasons Apple shares can still trade higher in the year ahead.
• Many Apple products are already sold out for the holiday season.
• India manufacturing production is coming online… He also notes that there are currently no Apple stores in India. If Apple can reach 10% of the India market, he says, it would boost revenue by $4 billion a year.
• Apple has become a platform that reaches beyond products and software.
• Apple is moving into health care, with Apple Watch applications “starting to be embraced by health insurance companies,” he notes.
• He also says there is the misperception that Apple’s top line isn’t growing, and that earnings per share is disproportionately boosted by stock buybacks.
MacDailyNews Take: From Jim’s lips to Mr. Market’s ears!