Apple (AAPL) Stock: $170 Price Target From Bernstein

By Amit Chowdhry ● Feb 6, 2022
  • The shares of Apple Inc (NASDAQ: AAPL) have received a $170 price target from Bernstein. These are the details.

The shares of Apple Inc (NASDAQ: AAPL) have received a $170 price target from Bernstein. And Bernstein analyst Toni Sacconaghi has a “Market Perform” rating on the shares.

Sacconaghi pointed out that in fiscal 2021, Apple’s gross margin grew 350 bps year-over-year to 42%, driven by Product margins — which instead of declining — expanded 390 bps last year. And in Q1 2022, strength in Services, particularly in advertising, was the biggest driver of year-over-year gross margin improvement. 

Going forward, Sacconaghi believes that if product margins can stay flat, Apple could drive 100-plus bps of gross margin expansion per year. And in the near-term, Sacconaghi sees some risk that the second half of the year gross margins will decline due to mix and currency. 

As a whole, Sacconaghi is incrementally encouraged by Apple’s first quarter results. But at 28 times EPS, Sacconaghi believes the stock is fairly valued.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.