Jefferies began covering Apple Incs (AAPL) stock with a “Buy” rating and a price target of $265 on Monday. The firm highlighted that Apple could establish a “massive” services business by using the foundations of its essential iPhone business.
Apple shares closed lower for a second consecutive trading session on NASDAQ on Monday. It has also been the steepest daily loss since October 24th. The stock went down 1.88% ($4.06) to $212.24, after touching an intraday low at $207.37, or a price level not seen since August 10th ($206.67).
Shares of Apple Inc have surged 25.42% so far in 2018 compared with a 1.21% drop for the benchmark index, S&P 500 (SPX).
In 2017, Apple’s stock gained 46.11%, thus, it again outperformed the S&P 500, which registered a 19.42% return.
“We believe AAPLs stable iPhone business will serve as the foundation upon which it can build a massive, recurring and high margin Services business,” Jefferies analyst Timothy OShea wrote in a client note, cited by CNBC.
Jefferies expects Apples services business to account for 25% of the tech companys total revenue by fiscal year 2020. Services alone may be worth between $111 and $177 per share by 2020, according to OShea.
“Services growth will be led by App Store and Apple Music, and we see an opportunity to introduce new services over time,” the analyst also noted.
According to CNN Money, the 34 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $242.00, with a high estimate of $310.00 and a low estimate of $165.00. The median estimate represents a 14.02% upside compared to the closing price of $212.24 on October 29th.
The same media also reported that 23 out of 40 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 13 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Apple Inc (AAPL) are presented as follows:
Central Pivot Point – $217.73
R1 – $222.80
R2 – $229.29
R3 – $234.36
R4 – $239.42
S1 – $211.24
S2 – $206.17
S3 – $199.68
S4 – $193.18
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
