Apple (NASDAQ: AAPL) stock price rally is likely to extend momentum amid analyst’s confidence in its future fundamentals. The majority of market pundits have increased their price targets for AAPL shares following robust Q4 results and a strong outlook for the next year.
Its shares are currently hovering around an all-time high of $249. Apple stock price soared more than 30% since the start of this year. Investor’s confidence in iPhone 11 along with increasing revenue from services and wearable segments supported the upside momentum. In addition, the launch of Apple TV+ is among the catalysts for AAPL shares.
Analysts Raised Apple Stock Price Target
The market analysts believe that stronger than expected performance in the fourth quarter bodes well for future growth. For instance, Deutsche Bank increased its price target to $235. The bank claims acceleration in services revenue combined with improving margins would back share price gains.
Piper Jaffray, on the other hand, raised the AAPL stock price target to $270. The firm says, “the company’s position going into 2020 includes the current iPhone performing at or above plan, non-iPhone businesses like Wearables and Services trending better than expected, and growing excitement around the 5G iPhone expected next year.”
Wedbush appears more bullish about AAPL shares. The firm has lifted the target to $300. Wedbush believes the company could achieve 190M iPhone units in FY20.
Revenue Diversification is Working
The company has smartly diversified its revenue base in the past couple of quarters. The company has generated 17% Y/Y growth from non-iPhone revenue in the latest quarter. The wearables revenue jumped almost 50% from the previous year period. In addition, its services revenue of more than $12.5 billion hit a record level in Q4.
“We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fueled by accelerating growth from Services, Wearables and iPad,” said Tim Cook, Apple’s CEO.
The company expects to generate $84 billion in first-quarter revenue, which is significantly higher from the previous quarter revenue of $64 billion. Overall, the Apple stock price appears in a position to extend the upside momentum.