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It’s been a rough few quarters for Apple ( AAPL ) stock, but Nomura Securities sees “brighter days ahead” for the iPhone maker. Nomura analyst Jeffrey Kvaal on Monday reiterated his buy rating on Apple stock with a price target of 135. Apple stock was up a fraction, above 102, in early afternoon trading on the stock market today . “We expect a drumbeat of positive news items — new products, improving supply chain, rising capital returns, iPhone 7 — to drive the shares higher,” Kvaal said in a report. “We expect the rising iPhone subscriber base to restore unit volume growth sooner than consensus estimates anticipate.” Apple has managed to keep Android smartphone rivals at bay despite mediocre sales of its iPhone 6S series phones, Kvaal said. On Thursday , Apple announced a spring product launch event to be held March 21 at company headquarters in Cupertino, Calif. Apple is expected to unveil a new 4-inch smartphone (iPhone SE), a next-generation 9.7-inch iPad and some new Apple Watch accessories. Another potential catalyst for Apple stock is the company’s annual update to its capital return policy. Apple is expected to raise its quarterly dividend and stock buyback outlay in April. “Apple’s dividend increases have averaged 11% since the dividend returned in 2012. The yield is now 2.1%,” Kvaal said. “Apple is likely to increase the dividend by approximately 10% to the 57-cent range and continue its share repurchase program. We estimate a $5 billion share buyback will boost EPS by approximately 8 cents to 10 cents on an annual basis.” RELATED: How Much Will Apple Raise Its Quarterly Dividend? Scalper1 News
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