How many clever analogies can one come up with for Apple doing well? One more: Citi analyst Jim Suva on Thursday gave Apple a buffing, raising his price target on the stock to $300 from $250 on expectations of a strong holiday quarter.
In a research note, Suva raised his 12-month price targetand reiterated his buy rating on the iPhone maker, pointing to “pricing strategies and recent demand trends” as factors that “augur for a better Christmas quarter” than last year. The consensus is “underappreciating the Apple Watch and Apple AirPods demand strength,” he wrote, adding that Apple’s services business would also grow and help margins.
Suva added that he anticipates upside to both earnings and sales, but doesn’t expect Apple’s valuation multiple to expand much more from current levels as it has “already expanded materially.”
That followed a separate albeit similar note from J.P. Morgan analyst Samik Chatterjee this week, who also lifted his 12-month price target to $296 from $290 and left his buy rating on the stock in place but for a different reason: on continued optimism over the company's revenue potential from advertising revenue from content streaming.