Apple (NASDAQ:AAPL) The stock has once again surpassed the $3 trillion market cap. This is the first time since August after the stock closed 2.11% higher on December 5th. Despite declining iPad and wearables sales, AAPL stock has shown remarkable resilience, up nearly 50% year-to-date. Additionally, two top Wall Street analysts expect the iPhone maker’s shares to reach its maximum price target of $240 in the next 12 months. This suggests further upside potential of 24.08% from current levels.
Factors supporting Apple stock
Higher iPhone sales, continued strength in the services segment and a growing installed base of active devices will support Apple’s financials and shares. However, the difficult year-over-year comparisons could hurt iPad sales. At the same time, the slowdown in sales in the Wearables, Home and Accessories (WHA) segment will continue to be a burden in the short term.
Meanwhile, Wedbush analyst Daniel Ives is bullish on Apple’s prospects and maintained a Buy rating on the stock on November 24. Ives’ optimism is based on the strength of iPhone sales and momentum in the services segment. It is worth mentioning that Apple set an all-time revenue record in the services segment, posting double-digit growth in the fourth quarter. The analyst has a price target of $240 on AAPL shares.
Similarly, Tigress Financial analyst Ivan Feinseth again commented on buying Apple shares on November 16th. Feinseth has a price target of $240 and expects “record iPhone sales and services as well as margin expansion” to support the company’s financials and enable it to increase shareholder value.
Is Apple a long-term buy?
Thanks to continued demand for its iPhones, particularly in emerging markets, and a growing services segment, Apple is a solid stock for the long term. This is reflected in analysts’ optimistic outlook for the stock.
Apple stock has received 25 Buys and eight Holds, giving it a Strong Buy consensus rating. Additionally, analysts’ average price target of $201.99 for Apple stock reflects an upside potential of 4.43% from current levels due to significant appreciation.
Apple will benefit from higher iPhone sales and continued momentum in the services segment. Furthermore, the improving supply environment will support its sales. While two top Wall Street analysts see further upside potential in Apple stock, the average price target shows limited upside potential due to the recent rally in the stock price.
Nonetheless, Apple is a solid long-term stock thanks to its record-breaking iPhone and services sales and its commitment to increasing shareholder value.