Apple shares could hit $ 200 very soon

Published: Wilson Clark

On: Aug 2017

The software giant Apple shares keep increasing in the anticipation of the launch of the iPhone which happened to be later this year. But it will be interesting to see what comes next after launch of iPhone in September 2017. While Steven Milunovich, a UBS analyst currently claims there is limited upside for Apple in the next coming year.

The stock of Apple may rise 5 per cent from its current $144 which will show more potential over the long term. As per his view, Apple shares could be realistically hit $ 175 in the next 2 or 3 years. But he also said that it’s possible only if products besides that of iPhone really take off.

Here we have shared the reason of what it would take for Apple’s stock price to hit $200 by the year 2019.

Here’s how Apple shares could hit USD 200

This fall’s iPhone 8 considered to be a supercycle of phone upgrades. And investor feels that next lineup fall’s will also be strong.

Other hardware business of Apple consists of products such as Apple Watch and AirPods. These products start seeing an immense growth of 20 % in next fiscal year. Right now, the investors are mainly focused on quarterly sales of iPhone and also the potential of services business of Apple.

The organization would have to show that its wearables have mass appeal. The overall ecosystem of Apple is more sticky than investors thought earlier.

The price-to-earnings ratio of the company increases from 14 to 16 % or even higher, beginning next year. If investors have more confidence about Apple’s potential, they will likely to pay more for every dollar the firm earns.

It is said that Apple buys more of its actual stock. That reduces the total number of shares outstanding ie means Apple’s per-share profits increase.