Analyst Sees Bullish Headwinds for Apple in 2014

Bernstein released some bullish comments on Apple

, which has given shares a slight boost in Wednesday's trading. Analyst Toni Sacconaghi sees 130 basis points of revenue growth year over and an added 80 basis points to gross margins thanks to the iTunes, software, and services businesses in 2014. By 2016, the year over year contribution should slow to 40 basis points revenue growth and 30 basis points to gross margin, given decelerating installed base growth, said the analyst. There are “significant roadblocks” to Apple creating a payment revenue stream, but it is the most likely new revenue stream in software in services. Shares are up 0.7 percent to $537 following the comments. The stock has been stuck in a trading range between $550 and $500 the past three months.