Is Apple Stock Set to Skyrocket?
Despite being one of the most profitable companies on the planet, some investors continue to remain bearish on Apple Inc. (NASDAQ:AAPL). But for brokerage firm Drexel Hamilton, LLC, Apple stock is only heading upward. One analyst has set a price target of $185.00, which is a good ways up from the current $114.00 per share.
The Wall Street firm claimed that Apple stock is “one of the most underappreciated stocks in the world,” according to a research note sent to clients on Friday. (Source: “Wall Street Firm Says Apple Remains One of the World’s Most Unappreciated Stocks,” MacRumors, December 9, 2016.)
Drexel Hamilton analyst Brian White backed up that sentiment by retaining his “buy” rating for Apple stock and setting the rather lofty price target.
Apple stock was up by 1.5% in late-day trading on Friday, which is a good sign for the company as it looks to close the year strong. Since the beginning of 2016, Apple stock has gained eight percent.
Despite concerns for Apple stock, namely its lack of success in the smartwatch department and the recent rumors that some “iPhones” in China are prone to spontaneous combustion, the company has posted strong sales numbers in 2016.
But much of that is coming off of the good name of Apple stock’s products and growing smartphone markets. With first-time smartphone buyers shrinking in large markets like China, alternative brands challenging the tech giant for supremacy in that region, and the high cost of the iPhone presenting a barrier to many consumers, some analysts have said that what Apple stock really needs is a new innovation.
Some see the “iPhone 8″ as the game changer that Apple needs. Others are less certain that the new iteration will sufficiently innovate to ensure Apple’s dominance for years to come. But you know what they say: two people in a room will have three opinions. For now, Apple stock enthusiasts and doomsayers both would do well to follow the movements closely as we head into 2017.