Tags: raymond james | apple | iphone | stock

Raymond James: Apple iPhone Demand to 'Squeeze Stock Higher'

Raymond James: Apple iPhone Demand to 'Squeeze Stock Higher'
(Christopher Sciacca/Dreamstime)

By    |   Wednesday, 23 October 2019 09:05 AM

Wall Street analysts continue to lift their price targets on Apple stock, reportedly citing improving momentum in iPhone sales and demand.

Raymond James analyst Chris Caso recently said better-than-expected iPhone 11 demand will drive Apple shares higher, Barron’s reported.

“We are now getting our estimates in line with the more favorable near-term checks for the iPhone 11 cycle,” he was quoted by Barron’s as writing. “More stable near-term conditions coupled with the launch of a new SE model in early 2020 create a bridge to the 5G cycle, which we believe will continue to squeeze the stock higher,” he wrote.

He is also more optimistic about Apple’s accessories segment on solid Apple Watch sales and in anticipation of a new AirPods release.

Caso raised his price target for Apple shares to $280 from $250.

Apple shares (AAPL) rose early Wednesday to $241. The stock has risen about 50% year to date as investors are anticipating rising profitability because of the company’s strategic shift to services, Barron’s explained.

To be sure, earlier this month Apple asked suppliers to increase production of its iPhone 11 models by up to 8 million units, or about 10%, Nikkei Asian Review reported, hinting that demand for the recently launched versions of its flagship phone was picking up.

“Previously, Apple was quite conservative about placing orders”, which were less than for last year’s new iPhone, the Nikkei said earlier this month, quoting a source.

“After the increase, prepared production volume for the iPhone 11 series will be higher compared to last year,” Reuters quoted Nikkei as reporting.

The recent surge in iPhone orders is concentrated in the cheapest iPhone 11 model and the iPhone 11 Pro model, sources cited by Nikkei said, while Apple has slightly reduced orders for its top range model, the iPhone 11 Pro Max, which has a starting price of $1,099.

“Despite all the perceived black clouds from being the poster child of the current U.S.-China trade tensions, Apple is seeing a very strong iPhone 11 demand trajectory and defying many skeptics that have been yelling fire in a crowded theater over the past few months,” Wedbush analysts wrote in a note.

The latest iPhone 11 range hit stores in China in September, with short queues of die-hard fans contrasting with the hundreds who camped out ahead of some previous launches, Reuters had reported.

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Wall Street analysts continue to lift their price targets on Apple stock, reportedly citing improving momentum in iPhone sales and demand.
raymond james, apple, iphone, stock
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2019-05-23
Wednesday, 23 October 2019 09:05 AM
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