One of the most magnificent stocks of the Magnificent Seven in the hearts of many investors is Apple (NASDAQ:AAPL). They maintain their positions in the tech giant in hopes of future growth thanks to its selection of attractive devices and the company’s ever-expanding software ecosystem.
Many analysts who follow the stock also believe in the company’s future. One of them recently reaffirmed that the stock could appreciate by 30%. Even for Apple, this represents a significant growth rate. Is it realistic and achievable?
Evercore ISI remains in the bull camp
Following an update from Apple on its App Store performance, Evercore ISI’s Amit Daryanani felt compelled to publish a new research note on the company.
THE technology The giant has done well with its application market. The resulting total revenue increased 13% in March, with growth across all categories, according to the analyst. Daryanani believes this gives the company a good chance of beating its forecast of 11% growth in services revenue for its second quarter of fiscal 2024, which has not yet been released.
Additionally, the tipster wrote in his note that “the strength of March’s number increases our confidence in Apple’s ability to maintain double-digit growth in the App Store.”
Is Apple losing its shine?
Daryanani’s positive attitude toward Apple contrasts somewhat with that of more cautious analysts who follow the stock. Some worry that the once-powerful iPhone will lose some of its luster due to weakening demand and low-cost competition. After all, the device saw sales drop 24% year-over-year in the crucial China market in the first six weeks of this year.
As a long-time Apple bull and determined holder of the stock, I lean more toward Daryanani’s argument. Hardware sales are of course essential and fundamental, but the company has made greater strides in services. These rose 11% year-over-year during the company’s most recently reported quarter, while product sales development was essentially stagnant. This is expected to support the company’s overall growth and preserve the confidence of its investors.
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Eric Volkman has positions at Apple. The Motley Fool holds positions at Apple and recommends it. The Motley Fool has a disclosure policy.
1 A Wall Street analyst thinks this wonderful seven stock will hit $220. Is this a buy around $169? was originally published by The Motley Fool
