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Citi: 5 Reasons Apple's Stock Price Will Continue to Soar

Image: Citi: 5 Reasons Apple's Stock Price Will Continue to Soar

By    |   Wednesday, 13 Dec 2017 03:52 PM

Citi Research reportedly believes Apple Inc/’s share price can only continue to surge for a handful of reasons.

Citi explains that Apple stock is still trading at an "attractive valuation" discount versus the market.

"We continue to see positive tailwinds for Apple's fundamental growth drivers," CNBC cited analyst Jim Suva as writing.

Suva shared his five top reasons why the company's stock can go higher:

  • "Super upgrade cycle continues into FY18 as production issues have resulted in elongated lead times vs prior cycles, thereby likely to drive better than seasonal demand in March quarter."
  • "Tax reform benefit from reduction in corporate taxes and cash repatriation."
  • "Sticky User Base Which Drives Continued Services Revenue Growth ... continued momentum in mobile commerce, mobile gaming, mobile entertainment will continue to drive sticky services revenue growth."
  • "Enterprise Push Mid Term, Applewood Longer Term ... enterprises are spending more efforts to upgrade mobile device hardware which is positive for Apple. Longer term we believe Applewood (Apple's move to gain traction in India & more services) will eventually become material."
  • "Attractive Valuation – Shares are trading at a 20% discount to the SP500 in line with their 5 year median despite improving fundamentals described above."

Apple's stock price was trading at $173 in late Wednesday trading.

Meanwhile, Apple said on Wednesday it had awarded $390 million to optical components maker Finisar Corp to boost production of laser chips that power iPhone X’s features such as Face ID, Animoji and portrait mode photos, Reuters explained.

The iPhone maker has committed to spend at least $1 billion through its Advanced Manufacturing Fund in U.S.-based companies to support high-tech manufacturing. The company had awarded $200 million to Gorilla Glass maker Corning in May.

(Newsmax wire services contributed to this report).

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Citi Research reportedly believes Apple’s share price can only continue to surge for a handful of reasons.
citi, apple, stock, price
Wednesday, 13 Dec 2017 03:52 PM
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