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Apple CEO Tim Cook delivers the keynote address during the 2019 Apple Worldwide Developer Conference (WWDC) on June 03, 2019 in San Jose, California.
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After Apple‘s 30% surge this year so far, the tech giant still has room to run with the upcoming earnings release likely to push the stock higher, according to Evercore ISI.
Apple, set to report earnings on Tuesday after the bell, will give investors a pleasant surprise as its service business continues to accelerate, Evercore analyst Amit Daryanani said. Evercore raised its 12-month price target for Apple to $227 from $217, representing an 8% gain from here.
“We think AAPL is well positioned to continue to surprise investors on the upside, driven by a confluence of better organic trends (specially in services) and low expectations regarding September-quarter guide,” Evercore analyst Amit Daryanani said in a note on Wednesday.
Evercore predicted Apple will highlight its sustainable growth in the services in its earnings release next week. The analyst also believes Apple will report its personal computer revenues beat expectations.
Apple has surged 32% this year so far despite the intensified trade tensions between the U.S. and China. The company had warned last fall that tariffs would affect a wide range of products, but it ended up dodging the duties for products including the Apple Watch and AirPods.