The mega caps have suffered in this year’s market rout and so has the biggest amongst them; Apple (AAPL) shares sit 20% into the red on a year-to-date basis. That said, assessing the tech giant’s prospects, one Street analyst expects the upward trajectory to resume shortly.
Tigress 5-star analyst Ivan Feinseth recently reiterated a Buy rating on Apple shares, while maintaining a Street-high target of $210. This suggests the stock will be changing hands for a 48% premium a year from now. (To watch Feinseth’s track record, click here)
Feinseth’s upbeat take is heavily based on the latest product introductions, and a number of “breakthrough announcements” made at the recent WWDC (Worldwide Developer Conference). According to the analyst, these should “continue to drive strong sales momentum.”
So, what did Feinseth particularly like?
One was the announcement of the new M2 chip which compared to the current “groundbreaking” M1 chip is 40% faster. The latest version of the MacBook Pro and the most significant MacBook Air redesigning in over a decade were also announced. There were also software upgrades, including iOS 16, iPadOS 16, and several watch and TV OS upgrades. Another key announcement was of a new BNPL (buy now pay later) payment option called Apple Pay Later.
That’s not all. The next-generation CarPlay interface also made an appearance, highlighting “further expansion into the automotive industry,” which going by Apple’s history, could well be a precursor to its own vehicle. As noted by Feinseth, Apple CarPlay’s functionality has seen constant expansion, and is now moving “beyond just controlling Apple apps to controlling the entire vehicle.”
“Apple’s new CarPlay can completely replace the car’s instrument cluster,” Feinseth expounded on the issue, “including controlling the radio, heating and AC, and other infotainment functions.”
All this ongoing innovation is backed by a balance sheet boasting $173.43 billion – or $10.65 per share – in excess cash (as of March 2022), which will keep on funding “new growth initiatives and strategic acquisitions while returning significant amounts of cash to shareholders.”
So, that’s Tigress’ take, what does the rest of the Street think lies in Apple store? Based on 22 Buys and 6 Holds, the stock has a Strong Buy consensus rating. The $186.09 average target might not be quite as high as Feinseth’s objective but could still generate returns of 31% over the one-year timeframe. (See Apple stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.