Apple’s share price is within striking distance of reaching a new all-time high.
Valuation close to an all-time high
“Thanks to a recent uptrend, shares of the stock Tuesday morning were just a stone’s throw from their all-time high,” writes Bill Maurer for financial services website Seeking Alpha. “At this point, it just seems that investors are waiting for the final piece of good news that will help the stock set a new record.”
Maurer notes that analysts are enthused about Apple’s new devices. Not only are they cheaper than last year’s iPhones, but they also add in a year of free Apple TV+. He writes:
“Recently, there have been a number of positive notes out from street analysts that have helped the stock move higher. For example, Jefferies came out changing its rating from Neutral to Buy. But it also raised its price target by a whopping $50 to $260, primarily citing a strong iPhone brand and the massive opportunity for services growth ahead. JPMorgan also raised its price target to a street high $265 on good sales momentum for the iPhone 11 line, with the potential for another off-cycle new phone launch next spring that could be quite important as I previously discussed. Finally, Evercore came out with a note this week discussing the potential for iPhone upside, keeping an Outperform rating and $247 price target.”
What would push valuation up?
Maurer suggests that the good news Apple needs could come from a truce in the China trade war. It could also come from Apple’s fiscal Q4 earnings, which it will reveal October 30. If sales are good and iPhone 11 is off to a great start that could be just the thing to push AAPL over the edge.
On Tuesday, AAPL shares hit a high of $228.20. That’s just over $5 from reaching a new record. The stock closed at $224.59, reflecting an overall downturn in the market — with all three major indices down more than 1.1 percent.
Source: Seeking Alpha