Tags: apple | stock | split

Apple Stock Split: Shares Strong Now, But May Struggle Later, Analyst Says

Image: Apple Stock Split: Shares Strong Now, But May Struggle Later, Analyst Says People walk past the Apple logo at the Apple Store at Grand Central Terminal in New York.

Friday, 30 May 2014 04:54 PM

By Morgan Chilson

As Apple stock spiraled higher and higher this week, breaking the $640 mark, analysts are predicting what will happen when the company makes a 7-for-1 stock split in early June.

Many Apple analysts had not predicted such a high stock price, and CNN Money said Bernstein’s Toni Sacconaghi raised his 12-month prediction from $615 to $700.

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

Placing the new target at $100 per share after the split June 9, Sacconaghi said he expects Apple shares to outperform the market with the new iPhone 6 launch and an iWatch, CNN said. But while he was positive about the next six months or so for the company, the analyst told CNN that he thinks the company will struggle over the next three to five years.

“Longer-term," he told CNN, "it is unclear to us that Apple can sustainably increase its earnings over the next three to five years. We believe Apple's primary end markets (smartphones and tablets) are increasingly mature and that overall gross margins are more likely to decline than improve over time. Additionally, while Apple is an innovative company, we note that the law of large numbers dictates that new product categories will have an increasingly difficult time moving the needle financially for the company."

Others also recently forecast an Apple run up to $700 a share, the Wall Street Journal said.

Oppenheimer’s Ari Wald predicted a record rise in the stock prices to WSJ even before the recent run up into the mid-$600s. Even if there was a pullback after the stock rose in price, Wald told the Journal that it probably wouldn’t last.

“The trend is rising,” Wald told WSJ. “If you’re not in [Apple] already, I believe you need a position in it.”

He added that in general, he’s a fan of tech and large-cap stocks, both of which Apple fits into.

Urgent: Assess Your Heart Attack Risk in Minutes. Click Here.

Related Stories:

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

The 2016 'Book Race': GOP Candidates Like Ben Carson, Huckabee Sell Like Hotcakes

Friday, 30 Jan 2015 20:50 PM

If potential Republican presidential candidates' recent book sales are a strong indication of their electability, then B . . .

Smoke on Boston Train Scares Passengers Who Bust Out Windows to Escape

Friday, 30 Jan 2015 19:37 PM

A commute on Boston's Red Line Thursday morning turned into chaos as smoke filled the train and passengers broke out win . . .

Seth Jackson Sentence: Foster Dad Gets 32 Months in Hot Car Death

Friday, 30 Jan 2015 18:50 PM

Kansas foster dad Seth Jackson was sentenced to 32 months in prison Friday for the July death of a 10-month-old girl who . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved