Market Overview

I think you’ll love what you hear,
what you’ll see and the opportunities
that will be set before you.
- Jon Najarian

Citi Expects Apple's Stock To Ripen In 2018

Citi Expects Apple's Stock To Ripen In 2018

2017 was a good year for Apple Inc. (NASDAQ: AAPL) investors given a near 50 percent return and the stock trading close to its all-time highs. Many among Wall Street are expecting 2018 to be just as rewarding to investors.

The Analyst

Citi's Jim Suva maintains a Buy rating on Apple's stock with an unchanged $200 price target.

The Thesis

Heading into 2018 Suva offered five reasons to justify his bullish stance on Apple's stock.

  • 1. The iPhone "super upgrade cycle" will improve as the company fixes production issues which resulted in longer lead times versus prior cycles.
  • 2. A reduction in the U.S. corporate tax rate would result in a 7 percent boost to Apple's earnings per share. A cash repatriation tax break/holiday to support share buybacks could add another 7 percent to its EPS.
  • 3. Higher screen repair costs and higher chargers for AppleCare could represent a catalyst in addition to growth in App Store revenue and Services.
  • 4. Apple's enterprise business represents another area of growth in the mid-term and the company's Applewood business is a longer-term positive.
  • 5. Apple's stock is still trading at a 20 percent discount versus the S&P 500 index and is merely in-line with its five-year median despite showing improving fundamentals.

Price Action

Shares of Apple were trading higher by 1.3 percent at $172.97.

Related Links:

Apple Analyst Shrugs Off Demand Concerns: 'Gross Margin Is The Key'

ICYMI: Apple Is Gaining Ground On Activated Smartphones In China

Latest Ratings for AAPL

May 2019MaintainsBuy
May 2019MaintainsNeutral
May 2019MaintainsMarket PerformMarket Perform

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Apple India Apple Services Citi iPhoneAnalyst Color Top Stories Analyst Ratings Tech Best of Benzinga


Related Articles (AAPL)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Pivotal Breaks Down The Disney-Fox Bid

Mid-Afternoon Market Update: Finisar Surges Following $390M Contract From Apple; Nordic American Tanker Shares Slide