JP Morgan sets a price target of $ 272 for Apple's stock, sees a "significant advantage" for the company based a leading positi in the smartphe market and the services that Apple uses to report that revenue.
In a note released Thursday, the analyst of JP Morgan, Samik Chatterjee, gave Apple an assessment of overweight & # 39; and set a $ 2019 dollar target of $ 272. Apple's stock closed at $ 220.42 Wednesday.
The note is entitled Time for Apple Picking: Initiate OW compelling services transformati, Ripe Installed Base, Core Capital Deployment.
"Although Apple's leading positi in the market for premium smartphes is well understood by investors, we still see a significant benefit from current levels," writes Chatterjee.
Morgan joined other analysts and praised Apple's transiti to a services-based company, rising ASPs for the iPhe, going company innovati, "undervalued positi for ctinued robust growth of the installed base", the recent share buy-backs and a strg balance sheet. Morgan sees that Apple uses for "oversized redempti of shares or MA & # 39 ;.
Chatterjee, like Gene Munster and several other analysts, sees services in the future as a key for Apple.
"We are cvinced that the transformati to services, led by growth in both installed devices and service revenue per device, better follows investors' expectatis, including realizing a $ 48 billi revenue target by FY20E ahead of the schedule, "wrote the analyst. "The ability for services currently comes primarily from purchases in the App Store and there are several emerging drivers, such as Apple Music and Apple Pay, which should ctinue to generate strg growth."
Chatterjee also sees "robust high single-digit growth" in the plant's plant base, which in turn is likely to increase the revenue from services.
JP Morgan also predicted that Apple will so offer a "comprehensive media subscripti," which will include its video offering, alg with the ctent of newspapers and magazines, at a price of about $ 14.99.