Analyst: Apple's Stock on Tap to Soar as Innovations Emerge

By Jennifer Booton Markets FOXBusiness


Apple (AAPL) may be facing fiercer competition from the likes of Samsung and Google (GOOG), but at least one brokerage doesn’t think the tech behemoth has lost its mojo.

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Cantor Fitzgerald started coverage on the Cupertino, Calif.-based smartphone developer on Wednesday with a “buy” and a price target of  $777 a share. 

Analyst Brian White said Apple's stock is “in the midst of a recovery,” with the company on the verge of developing new products that could freshen its image and revive its product line.

Apple’s shares rose more than 2% to $499.16 in afternoon trade after rival Samsung unveiled its new smartwatch, dubbed Galaxy Gear. Apple is also said to be developing a wearable device called iWatch. 

“The past year was extremely challenging for Apple’s stock as the higher-end smartphone market hit a wall and the ramp of new product categories did not come to fruition,” White said. “However, we believe a major new product cycle will ramp over the next 12-18 months.”

Among some of its other upcoming innovations are next-generation iTVs and iPhones, including a cheaper smartphone expected to appeal to emerging markets and a broader, less-affluent consumer market.

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Troubled by headwinds and steeper competition, Apple’s shares have fallen 6% year-to-date and remain off about 26% from 12 months ago. However, Smith believes Apple’s stock hit a bottom in the June quarter and is now “prepared to snap back,” reaching Cantor's $777 target within the next year.

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