stock will rally as investors grow more excited about its non-iPhone businesses, according to Evercore ISI.
The back story. Apple stock (ticker: AAPL) has risen nearly 29% year-to-date as investor sentiment over its strategic shift to services has improved.
What’s new. Evercore ISI analyst Amit Daryanani reaffirmed his Outperform rating for Apple shares on Tuesday, predicting slightly higher profit margins.
“We think AAPL remains a ‘revaluation’ story as the focus shifts from growing the install base to monetizing the install base,” he wrote.
Apple stock was up 1% to $203.23 on Wednesday. The
Nasdaq Composite Index
The analyst said the recent decline in memory chip prices will help Apple’s gross profit margins. Moreover, he cited how the company has introduced new Macs over the past few months, which could drive better sales in its computer-business segment.
Looking ahead. Daryanani raised his price target to $217 from $215 for Apple shares.
Write to Tae Kim at firstname.lastname@example.org