Analyst T. Michael Walkley joins the green wave with a 29% bump.
From a note to clients Tuesday that landed on my desktop today:
We believe Apple’s ecosystem approach, including an installed base that exceeds 1.4B devices globally, is leading to record services revenue, and we expect the higher- margin services revenue growth to continue outpacing total company growth.
We are also encouraged by the strong demand for the iPhone 11 lineup and believe Apple will maintain its market share leadership of premium-tier smartphones that could be bolstered by a 5G upgrade cycle.
Further, Apple has market share leading positions in wearables with Watch and AirPods, and both have strong sales and growth momentum. Following strong 2H/F’19 results and ongoing strong cash flows resulting in $98B in net cash, we anticipate management will likely continue to bolster share repurchases and increase dividends.
Maintains Buy rating and raises price target to $355 from $275.
My take: Biggest leap yet, largely through higher multiples (20x 2021 EPS from 16x).