Subscribe to Money Morning get daily headlines subscribe now! Money Morning Private Briefing today's private briefing

This Apple Stock Price Prediction Sees Shares Hitting $200

An Apple stock price prediction of $200 might seem high compared to the analyst consensus of $121.95, but not to Money Morning Chief Investment Strategist Keith Fitz-Gerald.

"I think the whiners are out in left field," Fitz-Gerald said on the FOX Business program "Varney & Co." in a July 27 appearance. "They say Apple's got too much cash, Apple doesn't understand its products. I think Apple understands exactly what it's doing and they know exactly where they're going."

Fitz-Gerald's Apple stock price prediction puts AAPL at $200 within the next few years, a call he first made in April of last year.

Given what the Apple stock price has been doing over the past year, that forecast may seem far-fetched.

Even with a post-earnings pop of 7%, Apple Inc. (Nasdaq: AAPL) shares are flat in 2016 and down about 20% since closing at $132.07 on July 20 of last year.

Apple's Q3 earnings, which it reported July 26, beat expectations even though profits were down 27% year over year as a result of slumping iPhone sales. Investors also took heart in Apple's raised guidance for the current quarter as well as a strong showing in the company's services revenue – up 19% from the same quarter a year ago.

Services include Apple Pay, the iTunes Store, Apple Music, and iCloud.

The marked growth in services is why Fitz-Gerald has such a bullish AAPL stock price prediction. It's a trend he sees as a key Apple strength going forward.

What Everyone Gets Wrong About AAPL Stock

"Services are where it's at. You've got a billion-something devices out there. That's the point," Fitz-Gerald told program host Stuart Varney. "Everybody thinks about Apple as a device company. It hasn't been a device company for five years…. It's all about what's going to take the ecosphere forward. Apple is going to be an enabler. It's no longer going to be the end game as it was under [late Apple CEO Steve] Jobs."

Don't Miss: The Internet of Things revolution will create a $6 trillion market – and these five stocks are the best way to grab a piece of those gains for yourself.

It's a compelling case for AAPL stock. For much of the past year Wall Street has done a lot of hand-wringing over flattening iPhone sales and the lack of a new blockbuster Apple device to drive growth.

But that obsession with hardware drew attention away from Apple's services growth story. The services segment is already Apple's second-biggest revenue generator.

And it has tons of room to grow. Take a look at these projections…

Why Services Are the Key to Apple Stock

Join the conversation. Click here to jump to comments…

Leave a Reply

Your email address will not be published. Required fields are marked *


Some HTML is OK