Ahead of Apple’s Q3 earnings results set to be released on Thursday, JPMorgan has raised its price target to $425 per share, up $60 on the heels of long-term investment impact. As TheStreet reports:
Chatterjee argues that a third-quarter earnings beat, as well as the upswing from the coming 5G rollout, are already priced into the stock, but still sees longer-term value linked to the group’s services portfolio and the ‘underappreciated leverage” of the shift to ‘work from home’ trends.
While the firm has increased its price target, it has removed Apple from its “analyst focus list”, a sign that concerns are still present despite stock gains. In March for the 2nd quarter of the year Apple beat Wall Street expectations reporting a revenue of $58.3 billion, $2.55 per share.
Q3 is likely to come shy of Wall Street predictions thanks to COVDI19 which has resulted in Apple Stores closing with less in-person product purchases. However, Apple services such as Apple Music, Apple Arcade, and Apple TV+ are likely to have grown.