Apple, Inc. shares are rebounding after the weakness witnessed late last week on reports of weaker iPhone demand. Notwithstanding the rich valuation the shares have built up this year, they are still a buy, according to an analyst at KeyBanc Capital Markets.
Apple Analyst
Brandon Nispel initiated coverage of Apple shares with an Overweight rating and $191 price target.Apple Thesis
Apple’s iPhone sales have not peaked, with a 5G upgrade cycle near-term potentially pushing Apple past its peak, analyst Nispel said in a note. The company isn’t overly reliant on the iPhone, as the product breadth has expanded, he added.The analyst expects Services to grow at rates multiple times faster than user growth, ultimately driving gross margins higher through revenue mix. This, the analyst said, is despite concerns over regulations of Apple and the App Store.
