This Top Analyst Bullish on Apple Inc. (AAPL) Shares Following Annual Worldwide Developers Conference

Yesterday, Apple Inc. (NASDAQ:AAPL) hosted its annual Worldwide Developers Conference (WWDC) in San Jose, where the tech giant unveiled promising new products, from the newest iOS version to five fresh to upgraded products. In reaction, Piper Jaffray top analyst Michael Olson reiterates an Overweight rating on AAPL, listing a price target of $158, which represents an upside close to 3% compared to where the shares last traded.

At the WWDC, Apple introduced ARKit for IOS 11, an augmented reality (AR) platform available for iPhones and iPads. Olson strongly believes ARKit “instantly creates world’s largest AR platform,” and points out “AR has become one of Apple’s largest areas of focus, when it comes to innovation. We expect 3D sensing and potentially other new functionality on iPhone X will further Apple’s foray into AR.”

Additionally, the industry giant introduced its brand-new product HomePod, a home assistant that blends with Siri. Yet, the analyst explains HomePod’s impact on the company’s earnings in the short term will be “immaterial” taking under account its steeper price compared to those of the rivals. HomePod is set at $349, whereas Amazon’s Echo costs $179 and Google Home is priced at $109.

Nonetheless, Olson asserts AAPL shares stand at favorable advantage in the short-term considering the upcoming iPhone X launch that continues to generate a great deal of buzz for the giant, even if Apple’s second fiscal quarterly report was not “squeaky clean.” In the bigger picture, the analyst concludes with a bullish take on the giant, despite some investor concerns, opining, “We recommend owning AAPL due to growing anticipation around iPhone X and a favorable trajectory for services revenue. While some may be concerned that June quarter iPhone estimates will prove aggressive, we believe expectations for near-term iPhone units have been adequately reset and any June quarter iPhone miss would be overshadowed by investor anticipation for iPhone X.”

According to TipRanks, a financial engine that measures and ranks analysts’ and bloggers’ performance, top analyst Michael Olson is ranked #70 out of #4576 analysts. Olson has a 67% success rate and generates an annual yield of 17.7%. When recommending AAPL, the analyst earns a 17.6% average profit on the stock.

TipRanks analytics show AAPL as a Strong Buy. Based on 30 analysts offering recommendations for this share, 25 issue a Buy and 5 maintain a Hold. The 12-month average price target stands at $165.31, making a nearly 8% upside from where the stock is currently trading.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts