Promotions an Apple (NASDAQ: AAPL) will soon recover from the post-split plunge and return to new all-time highs.
This is the opinion of Laura Martin, an analyst at Needham. On Wednesday, Martin reaffirmed her buy rating for Apple stock and raised its price forecast from $ 112.50 to $ 140. Its new target represents a potential return to investors of about 24% compared to the current share price of around $ 113.
Apple shares are poised for a recovery, one analyst said. Image source: Getty Images.
Martin welcomed Apple’s decision to consolidate its services. On Tuesday, the company unveiled the Apple One, which will allow customers to bundle up to six of its services into one subscription at a reduced price. Martin believes the package will help Apple take a stake from its standalone competitors.
She considers non-standard Apple chips to be another key competitive advantage. She predicts that the gap between Apple and its competitors will widen with each new device it launches, increasing its ability to charge higher prices (and thus profits) over time.
Will Apple’s stock price reach $ 140?
Martin’s logic is correct. Apple’s custom chips should help decouple products from the package, and the new kit should bring more people into the rapidly expanding ecosystem of services. Apple’s earnings and profits, in turn, could skyrocket, pushing up the value of its shares. As such, a rise in its share price to $ 140 next year seems not only possible but probable, and it could happen faster than many investors currently expect.
