Apple: Jefferies initiates with 'buy'; shares rise
(CercleFinance.com) - Apple shares have risen by up to 1.
5% on Monday after Jefferies & Co initiated its coverage of the stock with a "buy" rating.
Analyst Timothy O'Shea has set a target price of 265 dollars for the share of the technology giant, saying that Apple's stable iPhone business will serve as the "foundation," upon which it can build a massive, recurrent and high-margin services business.
By fiscal year 2022, services could account for a 25% of the company's revenue and 40% of gross profit, Jefferies wrote in a note.
"Applying a higher multiple compared to the lower margin hardware business, we see a significant opportunity for investors as services alone could be worth 111 dollars to 177 dollars per share by that time," it said.
The shares are currently up 0.7% at 217.8 dollars.
Apple will report its fourth-quarter results on Thursday, 1 November
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
5% on Monday after Jefferies & Co initiated its coverage of the stock with a "buy" rating.
Analyst Timothy O'Shea has set a target price of 265 dollars for the share of the technology giant, saying that Apple's stable iPhone business will serve as the "foundation," upon which it can build a massive, recurrent and high-margin services business.
By fiscal year 2022, services could account for a 25% of the company's revenue and 40% of gross profit, Jefferies wrote in a note.
"Applying a higher multiple compared to the lower margin hardware business, we see a significant opportunity for investors as services alone could be worth 111 dollars to 177 dollars per share by that time," it said.
The shares are currently up 0.7% at 217.8 dollars.
Apple will report its fourth-quarter results on Thursday, 1 November
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.