According to a report by the Wall Street Journal earlier this week, citing sources with knowledge of the matter, Apple Inc (AAPL) is in advanced talks to acquire Intel Corp’s (INTC) smart phone modem chip business.
The same media also said that a potential deal, estimated at at least $1 billion, could be struck during the last week of July.
Apple shares closed higher for a second consecutive trading session on NASDAQ on Tuesday. The stock went up 0.78% ($1.62) to $208.84, after touching an intraday high at $208.97, or a price level not seen since May 3rd ($211.84).
Shares of Apple Inc have added 32.40% to their value so far in 2019 compared with a 19.89% gain for the benchmark index, S&P 500 (SPX).
In 2018, Apple’s stock went down 6.79%, thus, it underperformed the S&P 500, which registered a 6.24% loss.
In April, the Wall Street Journal had said in a report that a sale of Intels modem chip business to Apple or to other buyer was being explored.
Intel Corp is scheduled to report results for the second quarter this Thursday, while Apple Inc is expected to report results for the fiscal third quarter on Tuesday next week.
Analyst stock price forecast and recommendation
According to CNN Money, the 35 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $217.00, with a high estimate of $250.00 and a low estimate of $150.00. The median estimate represents a 3.91% upside compared to the closing price of $208.84 on July 23rd.
The same media also reported that at least 20 out of 41 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 16 – as “Hold”. On the other hand, 4 analysts had recommended selling the stock.
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