Target Price for Apple Stock Increased

Apple stock has been given more increases to its target price from analysts who are bullish and predict consumers will be more than willing to dish out over $1,000 for the new iPhone 8.

At least two analysts on Wall Street raised price targets for Apple’s stock within the past three or four days. Wall Street is expecting the sales period of the upcoming iPhone 8 to be huge.

One analyst increased Apple’s target price to $170 from $165 on Monday. The analyst’s note said the price of the stock was based a great deal upon the selling price for the new iPhone 8.

The analyst said that the average sales prices for 2018 could be as high as $740 compared to that of $659 predicted for 2017 if the OLED iPhone represents at least 45% of overall unit sales. His range of average sales prices for iPhone is a low of $664 to a high of $783.

Due to the higher estimates for selling price, the analyst increased his 2018 fiscal per share earnings estimate to $11.15 from $10.80. He also has the opinion that the consensus could be increase by up to 7% from its current $10.42 estimate.

Most believe that Apple cannot charge much more for the iPhone 8 than Samsung is currently charging for its Galaxy S8 which stands at $840.

However, with the OLED display, the new iPhone will have a premium compared to the iPhone 7 Plus.

The thought is the entry level new iPhone 8 will cost approximately $870, but the 256GB model is expected to sell for as much as $1,070.

Predictions for units sold during fiscal 2018 have been increased by 15%, with the majority likely buying the pricier iPhone 8, with the more expensive Plus models capturing between 20% and 30% of the overall iPhone sales.

Another analyst increased his price target for stock at Apple to $168 from $157 and believes the company could reach the market capitalization figure of $1 trillion.

He is expecting $60 billion of free cash flow which will increase the stock repurchases by the company aiding in it reaching its eventual $1 trillion market capitalization.

He estimates as much as $35 billion in yearly share buybacks, lowering the share count by between 400 million and 500 million through the 2019 fiscal year.

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