Apple Inc (AAPL) Stock Price Target Boosted By Bank Of America, UBS

Apple Inc’s (AAPL) stock is expected to move in a positive direction as investors await what happens in the upcoming World Wide Developers Conference. Billionaire activist investor Carl Icahn remains bullish on Apple stock. He is expected to release his report within two weeks.

On April 28, Icahn had posted on Twitter that he considered Apple to be undervalued and “misunderstood.” He believes the company’s stock should be worth US$216 (AU$269) a share, a price higher than the expectations of the most bullish stock analysts, reports Forbes. Icahn had also revealed he owns about 53 million shares of Apple stock and has not sold a single share.

Icahn’s previous report had focused on the benefits that Apple enjoys from its tax structure. Since the day Icahn disclosed his Apple report, the company’s stock on May 15 had traded at the start at a price of $129.13. The day ended with Apple stock trading at $128.77.

Apple had announced on April 27 that it would be increasing its dividend and buyback programs through March 2017 for a total of $200 billion since the company has decided to repurchase shares.

Meanwhile, the Bank of America has set price target of $145 per share of Apple, according to its report issued on May 15. The bank currently has a “Buy” rating on Apple stock with a price objective suggesting a possible upside of 12.6 percent from the stock’s closing price in last week’s trading.

Investment research firm UBS has increased its estimate of Apple’s earnings per share for the fiscal year 2015 by 1.4 percent or $9.17 a share. The firm believes Apple will sell 51.1 million units in the current quarter to beat the average estimate of analysts of 45 million units. A stronger than expected iPhone sales could also result in a stellar performance of Apple in terms of revenue and earnings. UBS maintains its stock price target of Apple stock at $150.

Apple had posted revenue of $58.01 billion in the current quarter, beating earlier expectations of $55.53 billion, reports Dakota Financial News. Apple’s revenue for the quarter has increased 24.4 percent on a year-over-year basis.

(To report problems or leave feedback on this article, contact: r.su@ibtimes.com.au)