The stock price of Apple Inc. (NASDAQ:AAPL) gained 1.29% to $86.45 per share after analysts at Barclays upgraded their rating for the iPhone and iPad maker to Overweight, which is equivalent to a Buy rating. The analysts also raised their price target to $110 per share.
The analysts previously recommended Equal Weight, which is similar to a Hold rating for the shares of Apple Inc. (NASDAQ:AAPL) and a price target of $95 per share.
Analysts more optimistic with Apple’s strategy
Ben Reitzes and his fellow analysts at Barclays stated that they are now more optimistic with the strategy of Apple Inc (NASDAQ:AAPL) and CEO Tim Cook regained the confidence of the company’s shareholders. They emphasized that some of the risks they observed earlier this year have been corrected.
They also noted that Samsung Electronics Co Ltd (LON:BC94) (KRX:005935) recently demonstrated some weakness, which might create a “large unforeseen buffer.” They suggested that Samsung’s weakness could provide an opportunity for Apple Inc. (NASDAQ:AAPL) to regain share in the smartphone market near-term and perhaps over the long-term.
Reitzes and his colleagues also noted that the demand for the new products of Apple Inc. (NASDAQ:AAPL) are “so strong” based on their checks. According to them, the global demand for the iPhones seems to exceed their estimates. They also observed that Apple’s brand is becoming more attractive worldwide as the next iPhone launch approaches.
Analysts raise June quarter estimates
The analysts raised their earnings estimate for Apple Inc (NASDAQ:AAPL) to $1.24 per share on $38.3 billion in revenue for the June quarter. The company previously achieved $1.22 in earnings per share on $37.85 billion in revenue in the same period a year earlier.
Reitzes and his fellow analysts estimated that the tech giant shipped 37 million iPhones during the quarter, up from their previous projection of 35 million units.
Apple defeats Emblaze patent infringement case
Aside from the stock rating upgrade, Apple Inc. (NASDAQ:AAPL) received another good news today. The tech giant won a patent infringement lawsuit against Emblaze Ltd. (LON:BLZ), media services company based in Israel.
The jury ruled that the iPhone and iPad maker did not violate the live streaming media patent of the Israeli media services company. Apple’s legal counsel argued during the trial that Emblaze was an example of a failed company that targeting the Cupertino-based tech giant due to its success.
