Apple (AAPL) Stock Will Continue to Drive Greater Shareholder Value Creation, Says Analyst
Apple (NASDAQ:AAPL) seems pretty unstoppable right now. The eclipsing of a $1 trillion market cap has done little to deter hungry buyers from snapping up Apple shares. The tech giant has surged about 20% this month, and according to Tigress analyst Ivan Feinseth there’s a lot more fuel in the tank to propel it even higher.
“Apple continues to benefit from strong iPhone demand at higher average selling prices and increasing Services revenue and profitability,” said Feinseth while reiterating a Strong Buy rating on the stock. (To watch Feinseth’s track record, click here)
Feinseth believes AAPL’s Services business segment continues to emerge as one of the company’s future drivers of growth and profitability, along with its ongoing development of new and fast-growing technologies including autonomous vehicle capabilities, artificial intelligence (AI) applications and artificial reality (AR)/virtual reality (VR) functionality and products.
Furthermore, the analyst points out that the ongoing expansion of AAPL’s ecosystem along with the global growth of iPhone demand, especially in emerging markets with AAPL’s ongoing focus of increasing its penetration in India, will continue to drive strong Business Performance trends.
“AAPL is on our Research Focus List and in our Focus Opportunity Portfolio. AAPL’s strong brand equity, innovative ability, and leading global position together with its powerful cash generating ability will continue to drive greater shareholder value creation,” Feinseth concluded.
As such, the analyst sees significant upside in the shares exists from current levels and continues to recommend purchase.
Overall, Wall Street sizes up AAPL as a ‘Moderate Buy’ stock, as the bulls edge out the cautious on the chip giant. In the last 3 months, Apple stock has received 18 bullish ratings versus 11 analysts hedging their bets, and one bear. Yet, the consensus price target hints at caution baked into expectations here. The 12-month average price target of $213.58 reflects a 6% downside from today’s closing price. (See AAPL’s price targets and analyst ratings on TipRanks.)