iPhone maker Apple (NASDAQ:AAPL) hit a new 52-week high of $190.07 on June 29, taking the company closer to a $3 trillion market capitalization. The stock has been inching higher steadily this year, thanks to the recent buzz in technology companies and AI stocks. AAPL gained 16.9% in the past three months and has grown over 52% year-to-date.
Why Did AAPL Stock Spike Yesterday?
On June 29, Citi analyst Atif Malik initiated coverage of AAPL with a Buy rating. The analyst gave a price target of $240 on the stock, which implies 26.6% upside potential from current levels.
The five-star analyst is highly optimistic about Apple’s steadily expanding gross margins. Plus, Malik believes that Apple is skillfully navigating through the tough macro backdrop and stubborn inflation. He notes that Apple has been successfully capturing a greater market share than its Android phone competitors. Apple is pushing for more sales in China and India, he added.
Additionally, Malik stated that Apple is focussing more on selling premium models that are fetching higher sales and continuing to design cellular chips in-house, which is reducing manufacturing costs. All of these points are poised to improve the company’s margins going forward. Based on these factors, Malik sees a further 30% upside potential for AAPL stock from its current trading levels. Thus, the analyst has assigned the highest price target among Wall Street analysts to date.
Even Wedbush analyst Daniel Ives reiterated his Buy rating on Apple stock and set a price target of $220, which implies 16% upside potential from yesterday’s closing price of $189.59.
Is Apple a Good Long-Term Stock?
Top analysts on Wall Street indeed believe that Apple is a good long-term stock. Out of the top 24 analysts who recently rated AAPL, 18 have given it a Buy, and six have given it a Hold rating. Top Wall Street analysts are those awarded higher stars by TipRanks Star Ranking System. This is based on an analyst’s success rate, average return per rating, and statistical significance (number of ratings).
Based on their ratings, the average Apple price forecast of $193.41 implies a modest 2% upside potential from current levels. Apple stock commands a Strong Buy consensus rating on TipRanks.
