This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
What happened
Shares of Apple (NASDAQ: AAPL) rose 1.8% to a record closing high of $144.57 on Wednesday after a respected Wall Street investment bank issued bullish commentary on the popular tech stock.So what
JPMorgan analyst Samik Chatterjee reiterated his overweight rating on Apple's stock yesterday and boosted his share price forecast from $165 to $170. His new estimate implies potential gains to investors of roughly 18% in the coming year. Chatterjee noted that Apple underperformed the S&P 500 and Nasdaq in the first half of 2021. Yet he expects the tech titan to post strong sales of both current and future models of the iPhone. Thus, Chatterjee posits that Apple's shares could generate strong gains for shareholders in the second half of the year ahead of the launch of the iPhone 13.Now what
The recent rally in Apple's stock price suggests many investors agree with Chatterjee's bullish outlook. They're likely correct to do so. Robust iPhone volumes tend to also drive sales of Apple's high-margin services and fast-growing wearables revenue. So, if it does deliver blowout iPhone sales figures, Apple could enjoy an earnings bonanza later this year. This potential profit windfall, combined with Apple's bountiful share repurchases and steadily growing dividend, gives shareholders multiple ways to win.This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
