Wall Street Analysts: “Apple made us eat our hats”
Apple has recently become the first US company with a capitalization of more than $ 1 trillion. Analysts at Goldman Sachs previously doubted Apple's outlook for the booming demand for the iPhone X.
However, they have now redefined their views on the company and, in a new message to customers, said the smartphone maker from Cupertino “made them eat their hats.” Thus, analysts admitted that they were overly restrained in assessing the growth potential of the shares of the FAANG group (Facebook, Apple, Amazon, Netflix and Google).
Gold Hall Sachs analysts Rod Hall wrote in a message to clients that he and his colleagues expected a serious drop in iPhone X sales and, as a result, Apple's stock price decline - neither of these happened.
Now, the investment bank has raised its forecast for Apple stock prices by 20%: from $ 200 to $ 240 per share. Hall, suggests that the price of the new iPhone 9 will be at $ 849, which is significantly higher than the price previously discussed in the press at $ 699. Analysts are convinced that Apple may show "some flexibility and lower the price to $ 800, but is unlikely to accept a smaller amount" amid increased demand for iPhone X in recent months.
Goldman Sach is not alone in its current assessment of Apple's prospects. Their colleagues at Piper Jaffray, quoted byInvestopedia is also convinced that demand for the new iPhone will remain at high levels. Also, Apple announced the launch of the iPhone X, which, due to the name chosen, is not associated with a specific year of release, which has a positive effect on demand.
In addition, analysts cite a study whose authors found that about two-thirds of all iPhone owners (more than 500 million people) use a model that is at least two years old. There is also a great potential for Apple's business growth, because many of the customers will want to update their smartphone.
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