Innovative and technological software giant Apple Pay, has been predicted to become a $26 billion business by 2018. The bold disclosure was made today by renowned analyst Sherri Scribner of Deutsche Bank.
Whilst making the bold prediction, she did, however, emphasize that holders of the stocks of Apple Inc. (NASDAQ:AAPL), maintain a hold rating for the company’s stocks. Her reason for this was that she was expecting minimal impact from the company being heavily dependent on the ‘limited catalyst’s offer by its flagship product iPhone. As a result, she has stated that she expects the company’s unit price per share to regress over the year’s remaining quarter.
Her analysis has deduced that the company’s shares will fall by 14%, approximately $18.54 to $110 down from its closing price of $128.54 on Wednesday. Scribner anticipates that Apple Inc. (NASDAQ:AAPL) will outperform all its competitors’ smart watch devices in this fiscal year. However, she is of the opinion that this will remain a small part of its product category in comparison to its flagship product iPhone. She believes that this will make up 10% or a smaller amount of EPS and the total sales by 2018. Despite this attempt at a prediction apple’s shares rose .3% in the traded pre-market trading.
However, this possibly could be due to Sherri Scribner’s nature of being a pessimist when it comes on to analyzing the stocks trading on Wall Street. This is evident as this seems to be a diversion from the average prediction of Apple’s stock by the other financial analysts. Taking into account that the over 40 analysts who study Wall Street’s Market trends was rather optimistic about Apple’s shares rising. As a result, the average share target as reported by Factset sees Apple’s shares growing by $11.38 up to $134.92, from Wednesday’s closing share price of $128.54.
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