Apple Inc (NASDAQ: AAPL) has already bounced more than 30% off its low in mid-June but a Credit Suisse analyst says it’s a roller coaster that only goes up.
Apple shares have another 15% upside from here
The multinational has an installed base of nearly 2.0 billion that, as per Shannon Cross, helps accelerate the adoption of its high-margin software and services business. In a note to clients, she said:
We estimate gross margin will continue to trend around 43% with inflation and currency headwinds offset by higher services revenue (growing double digits) and vertical integration of components.
In its latest reported quarter, services revenue was up 12% on a year-over-year basis.
On Wednesday, therefore, Cross upgraded Apple shares to “outperform” and raised her price objective to $201 that represents another 15% upside from here.
Joe Terranova agrees with the bullish call
The Credit Suisse analyst also likes “AAPL” for consistent and, more importantly, lucrative shareholder returns. In 2021, the iPhone maker spent $100 billion on dividend payments and stock buybacks.
Its fortress of a balance sheet, she added, leaves the door wide open for organic investments and M&A for accelerated growth. Agreeing to the bullish call on CNBC’s “Halftime Report”, Virtus Investment Partners’ Joe Terranova said Apple shares were a great pick for the economic downturn that’s coming.
It’s the perfect stock to own in an economic downturn. All of its financial metrics allow for resiliency and for investors to be rewarded for staying patient and invested in this name. It’s an unbelievable company.
The stock is now trading just below the price at which it started the year 2022.
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