Apple (AAPL) will surge 40% in the next 12 months, according to Dan Ives of Wedbush.
The firm initiated coverage of Apple with an Outperform rating and added the tech giant to its Best Ideas List.
Ives also slapped a $310 price target on the stock, making him the biggest Apple bull on Wall Street. The average price target on Apple is currently $235.91, according to analysts polled by Bloomberg.
The firm’s bullish outlook centers around the expectation that Apple will sell more iPhones than Wall Street has been projecting and that the services business will ramp up.
“Gross margins heading into this 2019 product cycle showing no signs of abating and could translate into upside for the upcoming quarter, we believe many of the growth fears on the Street have been alleviated,” Ives wrote in a research note to clients on Thursday.
The next potential catalyst for the stock will be when it reports third-quarter earnings results on November 1. Analysts polled by Bloomberg are expecting earnings of $2.77 per share on $61 billion of revenue.
Apple shares were trading more than 1% higher Friday.
Heidi Chung is a reporter for Yahoo Finance. Follower her on Twitter: @heidi_chung.
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