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JP Morgan forecasts robust growth in Apple services segment

J.P. Morgan last week initiated coverage of Apple with a Buy rating, forecasting strong growth for its services offerings. Analyst, Samik Chatterjee writes in a report entitled Time for Apple Picking: Initiate OW on Compelling Services Transformation, Ripe Installed Base, Core Capital Deployment, that Apple is “transforming from a hardware company to a services company faster than investors had expected, which is driving financial and valuation upside,”.

The company’s services business includes its App Store, Apple Music and Apple Pay offerings and in 3Q18 it accounted for % of total Apple revenue

JP Morgan started its target price (TP) at $272, representing 17% upside to Wednesday’s (3 October’s) close. The analyst said Apple’s services sales rose to 13% of its FY17 revenue vs 8% in FY12 and predicts the segment will rise to 20% of sales by FY21.



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WEBINAR | The Navigator – Anchor’s Strategy and Asset Allocation, 2Q24

Anchor CEO and Co-CIO Peter Armitage will host the webinar, provide an introduction to current global and local market conditions and give his thoughts on offshore equities. Together with Head of Fixed Income and Co-CIO Nolan Wapenaar, Pete will also discuss Anchor’s strategy and asset allocation for 2Q24, focusing on global equities and bonds. In addition, Fund Manager Liam Hechter will provide insights into local equities, highlighting some investment ideas; Global Equities Analyst James Bennet will discuss Ferrari and give an update on Tesla, and finally, Analyst Thomas Hendricks will participate in a Q&A with Peter, explaining the 10-year US Treasury to attendees.