Apple Inc. (NASDAQ:AAPL) shares were higher in early trading today, recovering after a four-session losing streak, as Raymond James raised its price target for the technology giant’s stock.
In a note to clients, the broker hiked its target price for Apple to US$180 a share, up from US$170 previously, and reiterated an ‘outperform’ rating on the stock.
READ: Apple shares weak again, on track for worst post-product launch performance since 2013
Raymond James’ analysts said that a consumer survey and feedback from sources in Asia suggested that while the iPhone X won't launch a new "supercycle," it will boost average selling prices by about 10%, and expand Apple’s gross margin by about 2 percentage points.
They said they don’t expect Apple’s earnings and revenue growth to peak until sometime during the first half of 2018, so see the recent pullback in the stock to an 8-week low "as a trading opportunity."
Apple shares have fallen by over 5% in the past four sessions, and are off 6.8% since the group’s product launch event on September 12.
In early New York trading, Apple shares were up nearly 1.4% at US152.64.
--Updates share price--