Apple's Stock Price Projected to Keep Rising on 'iPhone 8' Optimism

iphone 8 mockupWhile a 5.8-inch iPhone with an OLED display is likely around six months away from being announced, the stock market is always looking ahead, and several analysts think the smartphone will be a hit among customers.

Accordingly, over the past month, several financial analysts have raised their price targets for Apple's stock to between $150 and $185, per research notes obtained by MacRumors.

Citi analyst Jim Suva, for instance, raised his Apple stock price target to $160 today. Likewise, BMO Capital Markets analyst Tim Long rose his target to $160 in late February.

Apple's stock has already been on an impressive run this year so far, closing at $139.34 on Monday, just cents off its record-breaking high of $139.79 set last week.

Long in particular said he expects Apple's trio of new iPhone models, presumably arriving this September, to drive the "biggest refresh cycle" since the iPhone 6 in 2014.

For the 2017 iPhone refresh, we expect some cannibalization by the premium model. While we expect like-for-like units to be 23 million lower, we model 34 million of unit volume from the new model. On balance, we estimate 11 million of incremental volume, the best launch since iPhone 6, though still less impactful. We believe this reflects conservatism in our estimates.

iPhone 6 and iPhone 6 Plus were runaway hits as Apple's first smartphones with screen sizes as large as Samsung's competing Galaxy smartphones, but the iPhone's overall look and feel has gone largely unchanged since those models were introduced three years ago, and iPhone sales declined for the first time ever last year.

The so-called "iPhone 8," or whatever Apple names its tenth-anniversary iPhone, will likely be something fresh and new, however, which Long expects could drive existing iPhone users to upgrade.

Long estimated that the number of iPhones in use was around 715 million, including 228 million second-hand devices, as of December 2016. Of the new models, he estimated 31% of the installed base will be 2 years or older at the time of Apple's presumed September launch event.

This larger than usual base of customers with older iPhone models has led analysts such as Morgan Stanley's Katy Huberty and UBS's Steven Milunovich to expect a "supercycle" of iPhone upgrades through next year.

Huberty recently raised her price target to $154, up from $150, but with an "overweight" rating. She expects the 5.8-inch iPhone's significant form factor change, and rumored features such as wireless charging, longer battery life, 3D sensors, and more advanced AI software capabilities, to drive the accelerated upgrade cycle.

Milunovich raised his price target to $151 in late February, up from $138, and he maintained a "buy" rating.

Huberty and Milunovich are far more conservative than Drexel Hamilton analyst Brian White, who has maintained a $185 price target since last year. "We continue to believe that Apple remains one of the most underappreciated stocks in the world," he said in a research note shared with investors in early February.

Guggenheim Securities analyst Robert Cihra reportedly raised his price target to $180, up from $150, last week.

Billionaire investor Warren Buffett of Berkshire Hathaway went on an Apple stock buying spree over the past few months, increasing his position in the iPhone maker to around 133 million shares prior to the company's record-breaking earnings results at the end of January. His holding has likely netted him several billions.

Tag: AAPL
Related Forum: iPhone

Top Rated Comments

canadianreader Avatar
64 months ago
Half a trillion dollars company unable and unwilling to update its mac mini and mac pro for years.
Score: 11 Votes (Like | Disagree)
darksithpro Avatar
64 months ago
Us, iPhone users are like: OMFG OLED!

Android users be like: Welcome to 2012, n00bs.
Score: 10 Votes (Like | Disagree)
apolloa Avatar
64 months ago
I can see Cook having another Apple Watch moment when he announces the price... or when Schiller does..

and so the iPhone 8 starts with 32GB RAM available in all these countries, the 32GB is $1199 and the 128GB is $1299....

Then comes that awkward silence moment when the audience goes quiet just like the $12000 Apple Watch announcement.

Of course stocks will rise anyway, that's Cooks aim and what he does.
Score: 8 Votes (Like | Disagree)
I7guy Avatar
64 months ago
This iPhone is the biggest update since the original iPhone in 2007. Honestly they could have just updated to OLED and left it there as that in itself is a huge upgrade
Not really. I'd rather have the kind of functionality updates that Apple is famous for than a new screen technology that isn't mature.
Score: 7 Votes (Like | Disagree)
VirtualRain Avatar
64 months ago
The iPhone 8 probably has nothing to do with Apple's recent stock price. The Dow has set 32 record closing highs since the presidential election. All stocks are on the rise.
Score: 6 Votes (Like | Disagree)
rudychidiac Avatar
64 months ago
Can't wait to be extremely disappointed <3
Score: 6 Votes (Like | Disagree)

Popular Stories

iPhone 14 Mock pill and hole thumb

ProMotion Now Expected to Remain Exclusive to iPhone 14 Pro Models, Not Expand to Entire Lineup

Sunday January 16, 2022 8:56 am PST by
Continuing the tradition set with the iPhone 13 Pro, only the highest-end iPhone 14 models will feature Apple's ProMotion display technology, according to a respected display analyst. Ross Young, who on multiple occasions has detailed accurate information about Apple's future products, said in a tweet that ProMotion will not be expanded to the entire iPhone 14 lineup and will remain...
safari icon blue banner

Safari Bug Allows Websites to Track Your Recent Browsing Activity in Real Time [Updated]

Sunday January 16, 2022 3:37 pm PST by
A bug in WebKit's implementation of a JavaScript API called IndexedDB can reveal your recent browsing history and even your identity, according to a blog post shared on Friday by browser fingerprinting service FingerprintJS. In a nutshell, the bug allows any website that uses IndexedDB to access the names of IndexedDB databases generated by other websites during a user's browsing session....
ipad air 4 video

New iPad Air Rumored to Launch This Spring With A15 Chip, 5G, Center Stage Camera, and More

Saturday January 15, 2022 8:05 pm PST by
Apple is planning to release a fifth-generation iPad Air with similar features as the sixth-generation iPad mini, including an A15 Bionic chip, 12-megapixel Ultra Wide front camera with Center Stage support, 5G for cellular models, and Quad-LED True Tone flash, according to Japanese blog Mac Otakara. Citing reliables sources in China, the report claims that the new iPad Air could be...
Unlikely Products 2022 Feature

Six Rumored Apple Products You're Unlikely to See This Year

Saturday January 15, 2022 2:06 pm PST by
Much has been said about what consumers could see from Apple in 2022, but the company is also working on a handful of rumored products that aren't expected to be unveiled for at least another 12 months, and in some cases a lot longer. Of course, that's assuming they get released at all. Apple works on many potential products some of which ultimately never see the light of day. With that in...
AirPods Pro Gen 3 Mock Feature Red

AirPods Pro 2 Could Start a New Accessory Ecosystem

Friday January 14, 2022 2:34 am PST by
Apple's second-generation AirPods Pro could arrive alongside a new series of accessories, recent leaked images suggest. Alleged leaked photos of the next-generation AirPods Pro obtained by MacRumors showed a charging case with a metal loop on the side for attaching a strap. Apple has not used this design for any of its other AirPod models and it is unclear why it would be added in this...
netflix2

Netflix Again Raises Prices for All Plans, 4K Streaming Now $20 Per Month

Friday January 14, 2022 12:46 pm PST by
Netflix today updated the prices for its streaming plans, and all of its offerings are now more expensive. The Basic plan is now priced at $9.99 per month, the Standard plan is priced at $15.49 per month, and the Premium plan is priced at $19.99 per month. The Basic plan is $1 more expensive, up from $8.99 per month. This plan allows users to watch on just one screen at a time, and it limits ...
tesla carplay solution

Developer Showcases Apple CarPlay Workaround for Teslas

Monday January 17, 2022 7:24 am PST by
A Tesla Model 3 owner has resorted to a workaround to implement Apple CarPlay in his vehicle, amid no sign of official support from Tesla (via Tesla North). Apple CarPlay and Apple Music support are among the most-requested Tesla features, but with no indication that Tesla is willing to implement Apple CarPlay in its vehicles, Polish developer Michał Gapiński took matters into his own...
top stories 20220115

Top Stories: iPhone 14 Pro Rumors, iCloud Private Relay Controversy, iOS 15.2.1 Released, and More

Saturday January 15, 2022 6:00 am PST by
Hole-punch? Pill? Hole-punch and pill? Rumors about what the front camera system on the iPhone 14 Pro will look like are evolving rapidly, and it now appears we might be getting a novel but potentially controversial design later this year. Other major stories this week included some confusion and controversy about iCloud Private Relay being disabled for some T-Mobile customers, increasing...