2017 proved to be a good year for Apple Inc. AAPL investors. The stock gained 50 percent and continues to flirt with its all-time high of $177.20. One Wall Street analyst expects nothing but further upside in the stock in 2018.
The Analyst
Loop Capital Markets' Ananda Baruah maintains a Buy rating on Apple's stock with an unchanged $200 price target.
The Thesis
There are three reasons to continue holding a bullish stance on Apple's stock, Baruah said in a Friday note. (See the analyst's track record here.)
The analyst's checks found that Apple's December-ending quarter iPhone shipments are on track to exceed a prior estimate of 75 million and are on track for 80 million-plus units versus the Street's 79-million unit estimate.
The analyst revised his iPhone X shipment estimates higher, as the company succeeded in "catch-up and shipments build." Specifically, Apple is projected to ship 30 to 35 million iPhone X units in the December-ending quarter versus prior estimate of 25 to 30 million.
Apple is seeing strong demand for the iPhone 7 and less demand for the iPhone 8, but this isn't necessarily a concern. The iPhone 7 has sufficient processing power to run upcoming virtual reality content which will likely be a key focus of iOS upgrades in the future, Baruah said.
Price Action
Shares of Apple were trading slightly lower ahead of Friday's market open.
Why Apple Remains Morgan Stanley's Top Pick For 2018
Gene Munster On Apple's 2018 Outlook
Photo courtesy of Apple.
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