Apple Inc. shares are on track to close at a record high Monday as the company approaches the next stage in its journey as a consumer-electronics powerhouse.
Shares of Apple AAPL,
The smartphone giant has weathered a lot since it last posted a record close, enduring supply-related challenges related to the pandemic and spending pressures that are affecting its customer base. But Wall Street seems reasonably comfortable with Apple’s ability to thrive in an era of tightened consumer budgets, with one analyst musing after the company’s last earnings report that iPhones costing $1,000 or more have become a glorified essential purchase.
There’s also budding optimism for the next chapter of Apple’s story. The company is expected to preview a mixed-reality headset at its WWDC developer event Monday, taking a stab at a category that has thus far failed to catch on in any mainstream way.
Apple readies launch of $3,000 headset: Will it succeed where others have failed?
The potential share-price milestone comes amid a strong year for Big Tech names generally. Apple’s stock is up 41% so far in 2023, while shares of Microsoft Corp. MSFT,
Bernstein analyst Toni Sacconaghi wrote in a recent note to clients that Apple “is entering its seasonally strong trading time of the year.”
He continued: “While Apple’s valuation looks relatively fairly valued vs. both consumer and tech companies, we see a path/precedent for the stock to grind higher.” He noted that fiscal 2023 estimates look safe and that the company is gearing up for its headset debut. He rates the stock at market perform.
Evercore ISI analyst Amid Daryanani, meanwhile, boosted his price target on Apple’s stock to $210 from $190 over the weekend, cheering three emerging areas for the company that could evolve into $10 billion-plus revenue businesses over the next few years.
See more: Apple could be cooking up 3 more $10 billion-plus businesses, one analyst says
