RBC hikes Apple price target to $250

From a note to clients Wednesday snagged by CNBC:

Analyst Amit Daryanani hiked his price target on Apple to $250 from $240 Wednesday after an RBC survey showed a marked uptick in buying intentions as well as growth in the number of customers opting for larger memory.

iPhone purchase intentions increased to 26 percent versus 20 percent last year, Daryanani said in a note to clients Wednesday, with 68 percent of respondents hoping to buy higher tier memory models.

The survey, which included more than 5,000 individuals, also revealed positive trends for Apple Watch and strong demand for AirPods, Apple’s wireless earbuds.

“We think demand for this generation iPhones – XS Max/XS/XR – is robust and average selling prices and gross margins could improve given mix benefits,” Daryanani wrote in a note to clients. “iPhone XS Max was the most popular phone among prospective iPhone buyers with 25 percent preferring it in our survey despite its high price.”

Maintains Buy rating, raises price target to $250 from $240. 

My take: Waiting for the note.

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