From MT Newswires, which snagged analyst Robert Muller’s note:
RBC Capital increased its price target on Apple (AAPL) to $145 from $132 remaining bullish on company’s both near- and long-term prospects.
According to the brokerage next year’s iPhone may be received even better in comparison to this year’s given robust 5G development throughout the year.
“In addition to the strength of its core product categories, we believe continued services growth, market-leading buyback activity, and potential for new products/services (Apple Car?) suggest AAPL’s premium multiple is warranted” said the brokerage.
Maintains Outperform rating, raises target to $145 from $132.
My take: Add this to the flurry of raised targets in advance of next week’s quarterly report. I’ve asked to see the note.
The automobile industry is evolving away from the IC engine. The Biden new administration through tax credits to the industry and to its consumers to facilitate that evolution to clean energy along with increased embedded and integrated technology for safety and efficiency serves as added incentive for Apple to become an integral competitor in the car industry in some significant and meaningful way. These are part of Apple’s core values of a cleaner environment with innovative user friendly consumer technology. How can Apple remain on the sideline? I do not believe they will or can. Apple will enter the car industry in some significant and meaningful way, as Apple enters any new area. I believe deeply it will be in the form of an Apple car. Going forward the swirling rumors will drive the stock price higher. We also will get additional clarity with each new corroborated rumor. Apple will retain its premium (or should I say deserved) multiple during this period.
Agreed, and right now the market is not valuing AAPL based on where it’s likely headed despite its ISM/PE, not with an RSI 0f 42 (just 12 points above the oversold indicator).