Apple stock received a price-target increase on Monday from RBC Capital Markets, which cited strong iPhone sales prospects, services business growth and “potential upside from Trumponomics.”
Benefiting from its expensive “plus” models and rising demands of its products, Apple will be worth at least $824 billion this year, analysts have predicted.
On Monday, RBC Capital Markets lifted its 12-month price target to $157 from $155 and reiterated an outperform rating. That would increase Apple’s market capitalization to $824 billion from $740 billion currently. Apple’s stock hit a record high of $144.77 on April 4.
The analyst made the move amid improved iPhone and product mix expectations, noting phone units have been stable to modestly better than expected. Meanwhile, the mix of phones skews positive with more “plus” models selling. There may also be upside for gross margins in the coming report, despite higher input costs.
Looking further ahead, RBC sees big iPhone 8 cycle tailwinds, higher capital allocation increase and repatriation benefits, services growth and acceleration, and finally, potential upside from ‘Trumponomics’ in the form of possible tax breaks.
The tech titan is due to post its latest quarterly results on May 2, 2017, after the markets close.