What you need to know
- Apple's stock this week reached new all-time highs.
- But some analysts think there is still more growth to come.
- A report has highlighted that analysts are still raising their target prices.
Apple analysts think that AAPL's record-breaking stock performance might not be over, raising their target prices and predicting even more growth.
Apple Inc. analysts have grown more positive on the company's prospects, pointing to the upcoming launch of a 5G version of the iPhone, as well as continued growth in its services business. The stock has been in a strong uptrend for weeks, gaining nearly 60% off a March low and closing Wednesday at record levels. The gains have given Apple a market capitalization above $1.5 trillion, making it the largest U.S. stock.
As Bloomberg rightly notes, Apple became the first-ever $1.5 trillion company in U.S. history this week. However, analysts think it isn't done yet. According to the report, BofA analyst Wamsi Mohan raised their AAPL target price to a whopping $390, up from $340. Mohan said they expect Apple product revenue to grow "20% next year from iPhone and wearables."
Wells Fargo has also reportedly raised its target price citing a "solid post-COVID recover" and the anticipated 5G iPhone 12 lineup. HSBC was also specifically listed as a firm upgrading its rating of Apple stock from 'sell' to 'hold.' According to Bloomberg, 29 tracked firms rate Apple's stock as a 'buy' option, compared to just 12 holds and four which advocate selling. The average target price is $323, up from $305 at the end of April.