Apple's Stock Gains After Analyst's Upbeat Research Note

By Tomi KilgoreMarketWatch Pulse

Apple Inc.'s stock tacked on 0.6% in premarket trade Tuesday, following an upbeat research note at Sterne Agee CRT. Analyst Rob Cihra started coverage of Apple with a buy rating and stock price target of $150, which is 33% above Monday's closing price of $112.44. "Addressing tech's biggest markets across communications, computing and media, we believe Apple can keep pushing out the law-of-large numbers as it creates its own growth and captures value from others by engineering innovative hardware-software-services in a vertically-integrated model," Cihra wrote in a note to clients. He said Apple's "uniquely-premium" economic model allows the company to earn more off its high-end customers than the rest of its competitors combined. Cihra said he believes the company's loyal user base and closed-loop platform drives a recurring revenue model over time. The stock has lost 9.7% over the past three months, but is still up 1.9% year to date, while the Dow Jones Industrial Average has declined 10%.

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