Apple's Stock Gains After Price Target Raised

Apple Inc.'s stock edged up 0.3% in premarket trade Monday, after Susquehanna raised its price target to $135 from $120 on expectations of higher average selling prices for iPhones. Analyst Chris Caso said strong demand for iPhone 6 Plus smartphones bodes well for Apple's profitability for the next couple of quarters. Caso said while his checks indicate iPhone production is running at 60 million to 65 million for the fourth quarter, as expected, the mix of iPhone 6 Plus smartphones being produced has increased to approach 50%. "We view the mix of iPhone 6 Plus to be a very important driver of [Apple's] profitability, since the profitability of the 6 Plus is so much higher than iPhone 6," Caso said. The stock has rallied 45% year to date through Friday, compared with a 12% rise in the S&P 500.

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