AAPL stock is starting the week off on a good run, thanks to a wave of optimism sparked by JP Morgan (NYSE:JPM). On Monday, JP Morgan increased its price target on Apple (NASDAQ:AAPL), among other things; this sent the tech stock into the green zone.
Here’s what we know.
Increased Price Target Sends AAPL Stock into the Green
On Monday, JP Morgan said it’s increased its price target on AAPL stock, going from $243 a share to $265 a share. According to the investment banking company, Apple’s shares have the potential to rise 21% as sales of the new iPhone are “stronger than muted expectations.”
In a note to investors, analyst Samik Chatterjee said the following: “We are modestly raising our iPhone volume forecasts and expect investor sentiment on AAPL shares to improve materially given the firm’s ability to drive upward revision to volume expectations despite the 2019 product cycle largely considered to be a muted one.”
Apple has been making several moves lately, but the recent increased price target boils down to iPhone sales. More specifically, JP Morgan now believes in 1 million more iPhones sales than it previously forecasted during the current quarter. It also expects 3 million more iPhone sales than forecasted in the final quarter of the year.
“In addition to a raise in volume expectations for 2019 product cycle, we are also increasing calendar 2020/2021 volume expectations led by stronger adoption of 5G enabled iPhones expected to be launched in September 2020 — all of which leads to stronger underlying revenue forecasts and will drive high investor confidence in the sustainability of revenue growth even in the backdrop of a mature smartphone market.”
With these expectations, AAPL stock has climbed into the green zone to start the week off on a positive note.
According to Yahoo Finance, as of 3:26 PM EDT, AAPL stock is trading at $224.15, which puts the stock up 2.43%.
What do you think about AAPL stock trading higher because of the news? Let us know your thoughts in the comments below.
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