Apple Stock Has Further Upside Potential
Apple Inc. (NASDAQ:AAPL) has been a part of millions of people’s lives around the world for a very long time. Apple stock has also worked wonders for a number of stock analysts who track the technology leader.
One of the most highly rated Apple stock analysts, Gene Munster, penned his last research report on the company on Friday, and it had some interesting insights. Munster, who is leaving Piper Jaffray Companies (NYSE:PJC) for a new career in venture capital at year’s end, has written 874 research notes on Apple stock, most of them bullish.
In his final note, Gene Munster provides some interesting insights on Apple Inc. and where AAPL stock might be headed next. Munster sees the company looking to increasingly become a services company, and points to augmented reality (AR) as one of the key opportunities for Apple to innovate. (Source: “Gene Munster’s last Apple note predicts AR wearables will replace the iPhone,” Recode, December 16, 2016.)
Munster wrote, “The smartphone remains the world’s window to augmented reality today. While this will change driven by augmented and mixed reality hardware in the future, we would expect the next five years of AR innovation will happen mainly through the device in our pockets [sic].” He believes that Apple could develop some type of AR or MR wearable that will ultimately replace the smartphone.
The Piper Jaffray analyst has been quite bullish on Apple Inc. all along and has maintained an “overweight” rating on Apple stock since 2004. He has covered the company’s transition from personal computer (PC) to mobile and is optimistic about Apple’s transition to a services company.
Gene Munster adds that, “We don’t know what the right answer is, but feel confident the management team will figure out the best forward path to optimize the services story.” If and when this happens, AAPL stock is likely to soar again.
There was another interesting development over the weekend as media reports confirmed that Pokémon Go is still coming to the “Apple Watch,” despite reports to the contrary.
“Pokémon Go is still under development and has not been canceled,” said a Niantic, Inc. representative to Recode, “We’ll have more news soon.” (Source: “Pokémon Go for the Apple Watch is not canceled,” Recode, December 17, 2016.)
Apple knows that it needs another winning product as the market for its iconic “iPhone” becomes saturated. There have been numerous reports suggesting that the company is working on an AR wearable device and has been hiring AR and VR talent.
Apple fans, including Gene Munster, will indeed be looking forward to another great product from the company, and this may come sooner rather than later. Munster still has an “overweight” rating on Apple stock, with a price target of $155.00. AAPL stock closed at $115.97 in the last trading session, which implies a further 34% upside potential.