Three Growth Areas For Apple: Installed Base, Used Phones, Services

BMO Capital Markets' Tim Long Reiterated

Outperform rating and $117.00 price target. This reiteration came after updating installed base analysis and increased used phone sales into Apple's valuation. "Installed base, used phones, and services should all have room for growth" explained Long. The analyst believed used iPhones are estimated to experience 25% CAGR throughout 2019 "which sets up well for future sales, and helps Services grow much more rapidly." Long claimed that "as a result… the device will drive an improved replacement rate [for iPhone7] even if it has lackluster features." Due to the analysts' positive outlook, BMO Capital Markets estimated Q32016 EPS at $1.37.