Apple shares will thrive this year due to tax reform, according to one Wall Street firm.
Bank of America Merrill Lynch reiterated its buy rating and raised its price target to $220 from $180 for Apple shares, which is 25 percent above Tuesday’s closing price. It is also the highest target among major investment banks that cover Apple. The $220 forecast represents a $1.1 trillion market valuation for the company.
“We remain bullish on potential for cash repatriation, lower tax rates, and the potential for positive estimate revisions heading into 2019,” analyst Wamsi Mohan wrote in a note to clients Wednesday. “A smoother iPhone cycle (no boom-bust) should drive increased stability in earnings, commanding a higher multiple.”
