Apple shares hit a fresh all-time high on Friday, company set to reach $1 trillion in market capitalization, analysts say

November 6, 2017 9:42 am

An increasing number of analysts project a valuation of $1 trillion for Apple Inc (AAPL), after fourth-quarter sales outstripped market expectations and eased concerns surrounding the company’s iPhone X. Apple’s first-quarter revenue forecast also exceeded a consensus of analyst estimates.

Apple shares closed higher for a second consecutive trading session on Friday. It has also been the steepest daily surge since October 27th. The stock went up 2.61% ($4.39) to $172.50, after touching an intraday high at $174.26 and also a fresh all-time high.

In the week ended on November 5th the shares of the technological company added 5.80% to their market value compared to a week ago, which marked a second consecutive period of gains. It has also been the best performance since the week ended on February 5th.

The stock has gained 2.05% so far during the current month, following a 9.68% surge in October. The latter has been the third gain in the past four months.

For the entire past year, the shares of the NASDAQ-listed company rose 10.03%. The stock has gained another 48.94% so far in 2017.

According to Apple, 46.7 million iPhones were sold during the fourth quarter ended on September 30th. In comparison, analysts on average had expected 46.4 million units sold, data by analytics firm FactSet showed.

Last week the tech company said it projects its first-quarter revenue to fall within the range of $84 billion-$87 billion. That compares to an average analyst estimate of $84.18 billion.

“We – and many others – had feared that guidance could be weaker, reflecting only 9 weeks of the flagship iPhone X and limitations on supply”, Toni Sacconaghi, an analyst for Bernstein, was quoted as saying by Reuters.

Meanwhile, according to estimates by Nomura Instinet, about 30 million iPhone X devices will probably be manufactured during the current quarter, which to an extent alleviated production concerns.

According to a report by Reuters, at least 13 brokerage firms revised up their price targets on Apple’s stock. Citigroup turned out to be the most bullish, as it raised its target from $170 to $200.

At the same time, at least 9 Wall Street analysts have already set price targets, which bring Apple Inc’s market capitalization to more than $1 trillion.

Brian White at Drexel Hamilton still has the most optimistic forecast among a group of analysts polled by Thomson Reuters, as he revised up his price target for Apple to $235.

According to CNN Money, the 33 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $180.00, with a high estimate of $208.00 and a low estimate of $140.00. The median estimate is a 4.35% surge compared to the closing price of $172.50 on November 3rd.

The same media also reported that 25 out of 37 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 6 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Apple stock are presented as follows:

R1 – $172.79
R2 – $173.08
R3 (Range Resistance – Sell) – $173.36
R4 (Long Breakout) – $174.23
R5 (Breakout Target 1) – $175.24
R6 (Breakout Target 2) – $175.67

S1 – $172.21
S2 – $171.92
S3 (Range Support – Buy) – $171.64
S4 (Short Breakout) – $170.77
S5 (Breakout Target 1) – $169.76
S6 (Breakout Target 2) – $169.33

By using the traditional method of calculation, the weekly levels of importance for Apple Inc (AAPL) are presented as follows:

Central Pivot Point – $170.16
R1 – $176.60
R2 – $180.70
R3 – $187.14
R4 – $193.58

S1 – $166.06
S2 – $159.62
S3 – $155.52
S4 – $151.42

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