Apple Price Target Headed Toward $170: Credit Suisse

Apple Inc. stock's price target was increased to $170 from $160 at Credit Suisse on Tuesday. Analyst Kulbinder Garcha also reiterated an outperform rating. The target increase makes Credit Suisse one of the most bullish brokerages covering Apple. According to a FactSet survey of roughly 40 analysts, the average rating on the stock is the equivalent to buy, while the average price target is $150.96. Garcha attributed his optimism to Apple's fast-growing services business, saying he believes the market continues to underestimate Apple's second-largest business by revenue. He expects services revenue to double to $52 billion and increase to 33% of gross profit by 2020, compared with $24 billion in fiscal 2016. Last year, services surpassed the Mac and the iPad by revenue for the first time. The App Store and other services are seen as a beacon, as hardware sales across the industry decelerate. Shares of Apple fell 0.2% to $141.55 in premarket trade. They have gained 18% in the past three months and 32% in the past year, outperforming both the Dow Jones Industrial Average and S&P 500 .