Apple's (AAPL +2.65%) recent streak of revenue declines might soon reverse thanks to a refreshed lineup of products, and the stock is unambiguously a buy. That's the post-earnings take on the company from one analyst following the company. After the May 2 publication of the high-profile tech company's latest quarterly report, he reiterated his bullish view of the stock.
15% potential
That optimistic analyst is CFRA's Angelo Zino, who pegs Apple as a buy with a price target of $210. That implies 15% upside from the stock's current level.
Apple is best known for its products, although it's the company's ever-growing lineup of services that's on the rise. They collectively brought it nearly $24 billion in the tech giant's recently published quarter, which was a 14% improvement year-over-year. Going in the opposite direction, product sales declined by 10% to almost $67 billion.
Somewhat counterintuitively, Zino feels Apple's potential lies in that slumping segment. He pointed out that the company has revamped its iPad lineup with larger and more powerful devices. Also, the release of its new M4 chip, "indicates how Aple is looking to accelerate hardware capabilities to meet potential new artificial intelligence (AI) apps/software capabilities," he wrote.
NASDAQ: AAPL
Key Data Points
Still popular after all these years
Apple is a driven, restless company that's always looking to have the most advanced and attractive devices on the market.
While I feel it's been years since it turned the world around with a product -- anyone remember the excitement over the original iPhone in 2007? -- those Apple Stores sure are crowded places these days. That might not necessarily result in a sudden pop of revenue in the products category, but this is a company that can keep its high-tech toys in fashion. Meanwhile, that services segment continues to head north, and I think the share price will too.
