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5 reasons why Apple could reach $650
As Apple gears up to report first quarter earnings, Saxo’s Peter Garnry gives five reasons why he thinks the stock is a buy.
1. Apple could reach USD 650 in 2014. Peter says that by looking at where the company is valued at the moment compared with what it actually generates in profit, there is an upside potential which could go as high as USD 650 this year.
2. China Mobile deal will boost sales. Peter explains this is not a deal about volume, Apple needs the distribution in China. It’s not the number of subscribers that’s important, it’s how much China mobile has penetrated the high end market.
3. New products are being launched this year. Peter understands an iPhone 6 will come out this year and there are also talks about an iPad Pro.
4. Apple has potential to grow further in emerging markets. Apple still hasn’t penetrated emerging markets "that much" which means Peter thinks it can grow at reasonable growth rates from here on.
5. Apple has a winning eco system. Peter thinks Apple's hardware and software "really matches", along with the right services.
01:39 minutes
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