Apple stock could be about to make some impressive gains. Having been depressed as a result of concerns about possible China tariffs, analysts think it might be about to experience a big value increase.
Analysts for MKM Partners and Rockefeller Capital point out that Apple has weathered the 2019 storm impressively well. Gradually trending upward, if it’s able to maintain it’s momentum we could be in line for some big share price jumps.
“This stock has been in an uptrend for the majority of 2019,” J.C. O’Hara, chief market technician at MKM Partners, told CNBC. “We’ve seen a series of higher lows take place.”
Climbing the hill
AAPL shares have risen more than 30% this year. After hitting a low in June, it has risen another 22%. While it’s mainly stuck around the $200 mark, if it’s able to maintain its performance, things could make a big noticeable improvement.
“Yes, $200 to $215 has been formidable resistance, but we really believe that if these trends continue to push positive that we will ultimately see a break above that level,” continued O’Hara. “Then all of a sudden, we’re looking back at the 2018 highs around $230. We really think there’s at least another 8% to 10% baked into the stock with these positive trends behind us.”
“The margins are improving, the demand is still there and you have a company trading at 16x next year’s earnings with a dividend yield of 1.5%,” Michael Bapis, managing director of Vios Advisors at Rockefeller Capital, told CNBC. “In today’s interest rate environment, that’s not bad.”
Both were responding to a recent report from JP Morgan. The financial powerhouse noted that, despite China fears, “silver linings” like pricing power and lower material costs will help Apple absorb any tariff charges.
This isn’t the first indication we’ve had that Apple stock could be in for a rally. Earlier this year, investor Gene Munster suggested that Apple stock is set to rocket upward. Munster predicted increases of 70% in the next two years. That would make Apple a $1.5 trillion company.
Right now, Apple is trading at $207.15. That gives it an overall market cap estimated by Yahoo Finance at $936.1 billion.
