Analyst Hikes Apple Price Target Over iPhone 6 and More
A prominent firm has upped its price target on Apple (NASDAQ:AAPL) shares based on the potential revenue that the company could derive from the upcoming iPhone 6 and other new products that are expected to be released this year. RBC Capital Markets analyst Amit Daryanani boosted his price target on Apple to $100 per share from a previous target of $96 per share, according to a research note obtained by Apple Insider. This puts the RBC analyst’s new price target close to the $100.72 split-adjusted peak that Apple stock reached in September of 2012. Daryanani also reiterated an “Outperform” rating on Apple.
Apple shares began trading at $92.69 on Monday, June 9, after the stock underwent a previously announced seven-for-one split. The split gave every Apple shareholder of record six additional shares for every share held and increased the company’s total outstanding shares from 861 million to around 6 billion shares. Before the split, Apple’s peak stock price was $705.07, while its highest closing price was $702.10.
In his research note issued on Thursday, Daryanani justified his price target hike by citing the increased revenue that Apple will likely derive from its higher-end iPhone 6 model. Multiple media outlets have reported rumors that Apple’s upcoming iPhone 6 will be available in two larger screen sizes of 4.7 inches and 5.5 inches. Daryanani believes that Apple’s phablet-sized iPhone could sell at an on-contract starting price of $299.
Apple’s iPhone has long lagged its Android-based competitors in larger screen size options. The iPhone 5S, Apple’s current flagship model, has a screen size of four inches. Meanwhile, Samsung (SSNLF.PK) — Apple’s primary rival in the smartphone market — has long offered its smartphones in multiple sizes.