Apple: UBS ups target price, thanks to services
(CercleFinance.com) - Confirming its buy rating on the Apple stock, UBS has raised its 12-month target price from 185 dollars to 215 dollars.
The broker's main argument in its note is that new services are expanding the group's offer and could help monetize Apple's customer base. UBS' new target price means upside potential of around 15%.
UBS emphasizes the increasing importance of services at the US tech giant, which is mainly known for its iPhone, iPad and other iMac computers. Indeed, the installed base of iPhone users now exceeds 900 million, of which about 600 million do not pay a cent for services.
However, gradually, this is changing: the proof is that there are now over 50 million (paying) subscribers to the Apple Music streaming, about three and a half years after its launch. UBS adds that quality content can be monetised and it believes that Apple can get a foothold in this market.
It hence cites services such as Apple TV+, or Apple News+, which has recently been launched at a subscription price of 9.99 dollars per month. In addition, there is Apple's game service and even the latest Apple Card payment card and Apple Pay.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The broker's main argument in its note is that new services are expanding the group's offer and could help monetize Apple's customer base. UBS' new target price means upside potential of around 15%.
UBS emphasizes the increasing importance of services at the US tech giant, which is mainly known for its iPhone, iPad and other iMac computers. Indeed, the installed base of iPhone users now exceeds 900 million, of which about 600 million do not pay a cent for services.
However, gradually, this is changing: the proof is that there are now over 50 million (paying) subscribers to the Apple Music streaming, about three and a half years after its launch. UBS adds that quality content can be monetised and it believes that Apple can get a foothold in this market.
It hence cites services such as Apple TV+, or Apple News+, which has recently been launched at a subscription price of 9.99 dollars per month. In addition, there is Apple's game service and even the latest Apple Card payment card and Apple Pay.
Copyright (c) 2019 CercleFinance.com. All rights reserved.