According to Citi Research, 2017 could be an amazing year for Apple. Citi Research analyst Jim Suva gave five reasons why he thinks Apple could rally to clients on Tuesday.
Here they are:
1. “iPhone 8 Super Upgrade Cycle driven by newer form factors driving a stronger upgrade relative to the prior 2 cycles”
2. “Tax reform benefit from reduction in corporate taxes and cash repatriation”
3. “Sticky user base which drives continued services revenue growth”
4. “Enterprise push mid term, Applewood longer term”
5. “Attractive valuation – Shares trade at a slight discount to their 4 year median multiples despite improving fundamentals ahead”
In his note he regarded Trump’s tax reforms as an advantage for Apple.
“Across our coverage universe, we see Apple as a significant beneficiary of Trump tax reforms. Apple is very well positioned to benefit from potential tax reform of either or both a repatriation tax holiday and or a lower corporate tax rate,” stated the note.
Suva also restated his Apple price target of $130.
Disclaimer: We have no position in Apple Inc. (NASDAQ: AAPL) and have not been compensated for this article.