Apple (AAPL) could go to $197 a share from the current $170 or so because the new iPhone X "is probably going to be a catalyst for much higher stock prices," TheStreet's markets columnist Stephen "Sarge" Guilfoyle says.
"I think [there] is probably pent-up demand for the X," Guilfoyle told Jim Cramer during TheStreet's November Trading Strategies roundtable of top columnists and guests.
Guilfoyle, a former New York Stock Exchange floor trader who writes TheStreet's daily Market Recon column, added that "the [real] reason to stay long Apple is the servicing of their ecosystem." The expert, who holds Apple in his personal portfolio, said tons of consumers are so tied into Apple's ecosystem of products that they're "stuck" with continuing to use the company's wares.
"I'm stuck with Apple," Guilfoyle said. "I don't necessarily like Apple products, [but] I'm not going to bother switching."
Cramer added that Apple CEO Tim Cook has said the company's service revenue "is going to be equal to a Fortune 100 company -- which is worth $28 billion. That's got gigantic gross margins, because they don't have to do anything, right? I mean, what do they do? You [just] pay them."
More November Trading Strategies
Click here to watch our full November Trading Strategies roundtable, or you can read more of our columnists' November recommendations here:
- Market Shrugs Off Tax-Policy Delay and Steamrolls into November
- Apple, Netflix and Two Dozen Other Names That Look Good for November
- AMD and Amazon Prove One Thing Still Exists In This Bull Market
Editors' pick: Originally published Nov. 10.