Credit Suisse’s Cross Outlines Apple Strengths
18 AUGUST 2022 - Word today on the new Apple price target from Credit Suisse analyst Shannon Cross. I told you yesterday of the former indie’s new post, and of her over $200 price target for the shares. Now Barron’s (via Apple 3.0) has Cross listing four big reasons for her high price target. They include:
Apple’s 1.8 billion device installed base, their stickiness, and the willingness of device owners to slide easily into Apple services
There are the high profit margins for Apple’s growing Services segment
There are the not quite as high but still really high profit margins for the rest of Apple’s business
Finally, there’s Apple’s money. With ~$192 billion in cash, Apple can do whatever it wants to drive returns, from returning cash to shareholders to spending big on R&D to spending big on acquisitions.
Cross initiated her Apple coverage for Credit Suisse with an “Overweight” rating. Her price target on the shares is $201.
