Apple Inc stock (NASDAQ: AAPL) has shot up more than 15% in two weeks in line with the broader rally in the tech space. Still, an Evercore ISI analyst says its not yet done pleasing the shareholders.
Apple stock could hit $300 over the long term
Amit Daryanani sees AAPL climbing to $210 a share in the not-so-distant future, which represents another 20% upside from here. Defending his bullish call on CNBC’s “Squawk on the Street”, Daryanani said:
Apple is something between a consumer staple and a high luxury goods company. If you look at those two buckets, it’s trading on a FCF basis at the lower end of valuation metrics. If it gets to the mid-range of these metrics, our price target is $210.
On the higher end of valuation metrics, he expects Apple to be a $300 stock over the next three years.
Apple is considering launching a subscription service for iPhone
A day earlier, Apple was reported considering a hardware subscription service for its devices, including iPad and the iPhone. According to Daryanani, such a shift could be a catalyst for AAPL.
What Apple could achieve out of this is, one, reduce the replacement cycles of the iPhone, make it more predictable. And secondly, make this a much more recurring business, a lot more consistent operating business model than the massive volatility we typically get around iPhone cycles.
His positive outlook on Apple is particularly interesting considering the EU is pushing for the “Digital Markets Act” that could hurt the iPhone maker’s profitability.
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