Apple Inc. AAPL shares, which have had a not-so-strong run thus far this year, are beginning to pick up some momentum.
What Happened: Apple is getting a lift from Evercore ISI analyst Amit Daryanani. The analyst raised the price target on Apple shares from $163 to $175, with the bull-case price target at $225. The analyst also maintained an Outperformed rating.
The Services business is on track to hit an annual run-rate of $100 billion by fiscal year 2025 and the Wearables will likely sprint to $70 billion, the analyst said. This, according to the analyst, will boost margins and offset the impact of the cyclical nature of the hardware business.
Daryanani estimates a 40-80-cent earnings per share accretion coming from under-appreciated opportunities such as healthcare, advertising, the Apple Car and AR/VR.
Related Link: 10 Things Apple Investors May Wish For In 2021
Why It's Important: Apple shares are down about 6% in the year-to-date period. After a record iPhone performance in the December quarter, most analysts expect a slight slowdown in the uptake.
Apple, however, is not a one-trick pony and has several moving parts that fuel its overall business.
The sell-off in Apple's shares should be seen as a buying opportunity, Wedbush analyst Daniel Ives said in a note last week. The analyst is optimistic about the iPhone momentum remaining vibrant in 2021. The iPhone supercycle is likely to continue into the fiscal year 2023, the analyst added, citing his checks on the initial build forecast for the next iteration of iPhone.
At last check, Apple shares were rallying 2.26% to $126.79.
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