Apple Inc. (NASDAQ:AAPL) has seen a golden run in the markets off-lately. Investors are excited about the company’s upcoming devices and have made it cross the coveted $100 mark (split adjusted). Apple Inc. (NASDAQ:AAPL)’s stock is now trading at its all time high without any signs of dropping down anytime soon, but how far will this run continue? Amit Daryanani, Analyst at RBC Capital Markets, and Stuart Jeffrey, Executive Director at Nomura discussed this on CNBC, recently.
” There was talk obviously of them using some really expensive components like sapphire screen, which people were worried about hitting gross margins and that hasn’t come through. Talk on the 5.5-inch phone perhaps being on a staggered launch, which may result in a strong March quarter and typically March ends up being quite a bit weaker. So, there have been some incremental positives, that I think will help give more validity to the move recently,” Jeffrey said.
Jeffrey feels that investors can hold Apple Inc. (NASDAQ:AAPL)’s stocks till March next year due to these dynamics, even though it has gone beyond Nomura’s price target of $95. Jeffrey is cautious about the next 12 months as he feels there is doubt regarding that after consumers go through the iPhone 6 replacement cycle, Apple Inc. (NASDAQ:AAPL) doesn’t have any product launches next year, so how will the company continue its growth.
Daryanani agreed with the points that Jeffrey made regarding the iPhone 6 replacement cycle, though he added that his firm thinks that Apple Inc. (NASDAQ:AAPL) would be launching its rumored iWatch next year in September that will drive the company’s growth after the growth from the iPhone 6 replacement cycle cools down.
“So, I do think that it’s a multiple product story, it’s not just the iPhone, but the iWatch that is going to pick some of the momentum for them as you get to 2015″ Daryanani added.
As of June 30, 2014, Carl Icahn‘s Icahn Capital LP owns 52.7 million shares in Apple Inc. (NASDAQ:AAPL), making him one of the largest shareholders in the company.