TencentSecurities, January 14thapples（NASDAQ:AAPL) The stock price increased by a cumulative total of 86% throughout 2019, and this upward trend is not over yet.
On Monday, Apple's stock price further entered record territory as Tom Forte (Tom Forte), an analyst at investment firm D.A.Davidson, released a research report raising the target price of Apple stock from $300 to $375, while reaffirming his “buy” rating for the stock. In this research report released on Monday morning local time, Ford said it is paying special attention to expectations that the 5G version of the iPhone is expected to be released later this year.
Here are his five reasons to continue to be bullish on Apple stock:
1. He said that with the launch of the 5G network, Apple should be able to continue to maintain positive smartphone sales growth for at least the next two product cycles.
2. Apple has emerging opportunities in streaming video, financial services, and healthcare. He wrote in the report: “In our opinion, the maturity of the smartphone market is one of the best things for Apple, as it forces the company to seek non-core opportunities to drive future growth,” he wrote in the report.
3. Apple Card boosts iPhone business. “One of the benefits for consumers who have signed up for an Apple Card (credit card) is that they can buy iPhones in monthly installments without paying interest.” Ford wrote in the report. “We believe this could be the 'catalyst' for iPhone sales in the next few years.”
4. The operator is motivated to launch a 5G network. “We believe that in order to make 5G a reality, wireless operators want to earn a return on their huge investment in infrastructure and spectrum, which should benefit Apple.” he wrote. “Because of this, wireless operators are likely to offer greater incentives to consumers to upgrade their devices to take advantage of their 5G networks.”
5. Stock buybacks. “(Stock buybacks) are probably one of the reasons for Apple's strong share price performance in mid-2019, and in the quarter ending September 2019, the authorized repurchase balance of Apple's last share repurchase program was $79 billion.”
At the same time, Ford also pointed out two risks facing Apple stock. The first risk is that users expect a lot from Apple's new iPhone. He stated, “In our opinion, the release [of the iPhone 11] is the lowest expected in the company's history. In contrast, expectations for Apple stock and the release of its next iPhone product are much higher.
The second risk Apple faces is tariffs. Ford said he is “still monitoring the possibility that tariffs will have a negative impact on Apple's operating performance.”
As of press release, Apple's stock price rose 0.85% to 312.96 US dollars/share in the US stock market's latest trading on Monday. Up to now in 2020, Apple's stock price has increased by around 6%. (Nebula)