Apple has gained $56 billion in market value since it announced increasingly optimistic guidance for its third quarter last week, bringing its current market value to $826.85 billion. RBC said Apple stock has plenty of upside left as it closes in on the mid-September launch of the 10th anniversary iPhone.
RBC said Apple's stock price has a median return rate of 15.6% in the 90 days prior to a new product cycle launch historically. Apple's strong gross margin performance and improving China sales next quarter could sustain that momentum beyond the launch of the new products.
RBC reiterated an "outperform" rating for the stock, with a $176 price target. Analysts have a base case of $10.50 in earnings per share through the next product cycle, but their bull case has earnings totaling $12 per share or above.
Apple stock is slightly down 0.46% premarket to $159.35 per share. It's up 38% this year.
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