Credit Suisse predicts Apple stock 'super cycle' on strength of all-glass 2017 iPhone
07:00Analysts on Wall Street are increasingly expecting an incremental iPhone hardware update this year, which has led some to turn their sights to a rumored 2017 handset revamp in hopes of pushing Apple stock to new heights.
With major changes said to be in the works, Garcha believes the 2017 iPhone could result in Apple not only courting new users, but also cause an acceleration of upgrades for existing iPhone customers. As a result, Credit Suisse believes Apple will be in a position to increase its share of the smartphone market.
"We see a number of features and upgrades, including an OLED [organic light-emitting diode] screen, full glass display, no home button, enhanced Taptic Engine, improved camera, and wireless charging in the iPhone 8," Garcha wrote. "While this is some time away, we believe the iPhone 8 will be feature and specification rich. These features, coming potentially in September 2017 and even if in just a Pro version of the device, should drive an accelerated replacement cycle and draw in new users and should result in mix improvements."
As a result, Credit Suisse forecasts project Apple taking 39 percent of the general smartphone market, with sales of 250 million units in 2018. If the predictions prove true, that would be a 16.1 percent increase over the previous year.
Based on these factors and "solid risk reward arguments," Credit Suisse continues to call for a 12-month Apple valuation of $150 per share. As of Thursday, Apple stock was trading at just above $97, down considerably from a 52-week high of $132.97.
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