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On August 31, Apple shareholders will receive four shares in exchange for each one they own.
Roslan Rahman / AFP via Getty Images
Apple stock went to new highs Monday, a week out of its 4-for-1 stock split.
Morgan Stanley analysts Katy Huberty and Erik Woodring raised their target price on the stock to $ 520 from $ 431. In a note on Monday, analysts wrote that their base business assumed growth in services and a 5G iPhone cycle doubled revenue growth in fiscal 2021 will send.
“We do not see any significant risk to App Store rates and see our long-term 11% EPS [compound annual growth rate] as conservative, ”she wrote. The take rate refers to the cut Apple receives from in-app purchases.
Apple stock (ticker: AAPL) was up 1.1% on Monday morning to $ 502.95, and traded up to $ 515.14, an intraday high. The Dow Jones industrial average was up 1%. The stock has risen 71% in 2020, a mammoth achievement given that stocks had also crushed the market in 2019. Apple stock is up 146% from 12 months ago. Last week, the company’s valuation dropped to $ 2 trillion.
On August 31, Apple shareholders will receive four shares in exchange for each one they own. Although shares splitting on the surface mean nothing to an investment, in theory they do make high-priced stocks more accessible to individual investors. That and growing optimism among analysts have sparked a spark for both Apple and Tesla (TSLA) in recent weeks, splitting 5 for 1.
The price target of Huberty and Woodring is now the highest reported by FactSet. The next-highest target belongs to Wedbush analysts Dan Ives, Strecker Backe and Ahmad Khalil. The Wedbush team maintained a $ 515 price target on Monday.
They noted over the weekend that media reports indicated that restrictions on U.S. companies accessing Tencent’s WeChat platform outside the US may not be as strict as some had feared.
“This is in line with our view and dissertation based on recent conversations with contacts within the Beltway that the WeChat ban will not adversely affect or disrupt Apple’s Apple ecosystem in the key China market, which accounts for about 20% of the total upgrades over the next 12 months represent up to 18 months, ”she wrote.
She added that 5G is still “the linchpin for future upgrade cycle.”
Write to Connor Smith at [email protected]
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