Why Apple Stock Popped Today – The Motley Fool

Returns as of 12/10/2021
Returns as of 12/10/2021
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Shares of Apple (NASDAQ:AAPL) climbed on Monday following bullish commentary from a Wall Street analyst. By the close of trading, Apple’s stock price was up 2.15% after having been up by as much as 3.7% earlier in the session. 
KeyBanc analyst Brandon Nispel placed an overweight rating on Apple. He foresees the tech titan’s shares rising to $191 over the next 12 months — about 16% higher than their current price of around $165.
A KeyBanc analyst expects Apple’s share price to climb to new highs in the year ahead. Image source: Getty Images.
Nispel sees three potential catalysts for Apple’s business that could drive its share price higher. First, he believes that desire for 5G connectivity will fuel an upgrade cycle that will boost iPhone sales. Second, he expects Apple to continue to diversify its revenue streams with new products. And third, he forecasts that growth in Apple’s services segment will expand its profits.
The growth of high-speed 5G wireless networks should continue to drive increased demand for the iPhone, which remains Apple’s most important product by far. And the more iPhones, Macs, and iPads the company sells, the easier it should be for it to sell more high-margin services to its steadily growing user base. This is a powerful formula for continued profit growth and, by extension, gains for shareholders.
Moreover, Apple is wisely preparing to broaden its product lineup with new augmented reality glasses and an ambitious self-driving vehicle initiative, according to Bloomberg. These new projects should help to expand Apple’s already massive addressable market.
As such, Nispel’s $191 price target for Apple’s shares seems well within reach.

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