Bernstein’s $340 Apple target bets on Services instead of hardware growth

Based mostly on Services growth prospects, Bernstein analyst raised his Apple price target to $340 from $325, while maintaining an Outperform rating.

Analysts raise their price target for AAPL

Toni Sacconaghi mentioned that there’s now better insight into Apple’s long-term earnings potential. Apple has seen growth in services and ongoing capital returns, as highlighted in a recent research summary.

Bernstein’s revised target reflects confidence in Apple’s ability to generate steady cash flow even as hardware demand remains uneven in some regions. The firm pointed to expanding services revenue, higher margins, and a large installed base as key supports for the higher valuation.

The analyst pointed out that Apple’s share repurchase program is a key factor supporting per-share earnings growth. Additionally, Apple’s ability to generate free cash flow over time plays a significant role in growth.

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