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Raymond’s analyst Chris Caso raised his expectations for iPhone 11 volume by 3 million units in aggregate for Apple’s December and September quarters.
It’s already widely known that the multinational tech company Apple Inc. (AAPL) has again joined the trillion-dollar society hitting the trillion-dollar market cap mark for the fourth time.
At the time of writing, Apple stock was trading premarket 1.73% higher to $240.51, the highest in history. Apple’s market cap started the week at $1.09 trillion.
There are some analysts who think shares might jump even more – to be precise 20 percent more during this year because of the strong iPhone 11 sales.
The independent investment bank and financial services company Raymond James Financial boosted the price target to $280 from previously predicted $250 that resulted in Apple outperforming the rest of the Wall Street stocks.
Even though this prediction would mean that Apple shares have to jump another 14%, analysts from Raymond James believe it is a “doable” mission regarding the Apple stock’s history over the last twenty years.
Raymond James analyst Chris Caso reiterated his outperform rating on Apple stock and raised his price target to 280 from 250. Caso brightened on Apple stock after channel checks showed strong sales of the iPhone 11 series smartphones.
According to data from a scalable machine learning and analytics systems firm Kensho Technologies Inc., during the first three quarters of 2019, Apple’s shares rose more than 40 percent, and since 2000, its stock has seen similar growth heading into the fourth quarter. The rise of Apple’s shares was often continued until the end of the year, usually because that’s when Apple reveals new products and technologies. Apple shares were also jumping by around 18 percent during these historical trading periods. The company’s stock traded positively 83 percent of the time.
This was also good for everybody, including tech-heavy NASDAQ composite that also noted considerable gains during these periods. Almost every December, the NASDAQ would add 5 percent while trading positively 67 percent of the time.
In September, JP Morgan said that the stock would rise by an extra 20 percent basing its optimism on comments made by Apple CEO Tim Cook. Both, JP Morgan and Raymond James were citing Cook’s notes about initial sales of the new iPhone 11 models being off to a “very strong start”.
JPMorgan analyst Samik Chatterjee raised his price target for Apple to $265 from $243 and predicted a jump in 2019 and 2020 iPhone shipments.
He said in a note to investors, while maintaining an Overweight rating for the stock:
“We expect solid consumer interest in 5G phones at the premium end of the North American market, and Apple is well-positioned to drive an outsized share with its 2020 product cycle.”
He predicted Apple will sell 198 million iPhones in 2020 and 200 million in 2021. JPMorgan also widened its iPhone sales forecasts for the third quarter by one million units extra and three additional million in the fourth quarter.
With him somewhat agrees Apple analyst Ming-Chi Kuo of TF Securities who said the new and more affordable iPhone SE2 that will launch in the first quarter of next year for $399 could be a key to unlocking as many as 200 million upgrades from the iPhone 6 and 6s and a “key growth driver” for Apple next year.
And, at the end, if to believe the US President Donald Trump, trade war between USA and China is coming to its end so the easing of trade tensions could also add to the rally in shares of the iPhone maker.