Apple is set to report earnings Tuesday May 2, and analysts at Credit Suisse are advising clients to buy Apple stock ahead of the release.
CREDIT SUISSE: Buy Apple ahead of the iPhone 8 'Super Cycle' (AAPL)
Credit Suisse says the iPhone 8 will be a big hit and that investors should buy Apple stock.
Shares of Apple have climbed 24% so far this year to $143.69 as of 10:22 ET. In a report circulated to clients April 28, Credit Suisse analyst Kulbinder Garcha reiterated his "Outperform" rating and $170 price target on the stock, implying more than 18% of potential upside.
"That recent data points from the supply chain suggest that overall iPhone shipments remain in line to ahead of expectations, with potential for a stronger mix," he said.
The analyst said that the real reason to buy Apple stock is the pent-up demand for a new iPhone with substantial changes. Garcha said the iPhone 8 is that iPhone, and that a "super cycle" of iPhone upgrading will ensue.
Here's Garcha:
Garcha referred to a March 10 report from Credit Suisse to explain why he believes the iPhone 8 will be a meaningful upgrade. That report said:
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