Strong iPhone 6 Demand To Propel Apple Inc. (AAPL) To $120 A Share: Steve Milunovich

Research firms are remaining buoyant over Apple Inc. (NASDAQ:AAPL)’s strong demand with iPhone 6 with most of them of the opinion that the trend could continue for the next three months. During an interview on Bloomberg, UBS Managing Director, Steve Milunovich, reiterated that the strong demand could push Apple’s stock to highs of $120 in the next three months.

Milunovich also quashed suggestions that Apple Inc. (NASDAQ:AAPL) sales could substantially be affected in the years to come with the resurgence of Chinese sensation Xiaomi, which continues to gain market share.

“We think we’ve got a couple of quarters here for the mega upgrade cycle to play on the iPhone 6. We are above consensus for the next two-quarters we expect to see big numbers, we think China is really going to kick in as well. We think the iPhone is going to carry the stock for another 3-6 months,” said Mr. Milunovich.

The analyst maintains that Samsung is the only one being squeezed in terms of market share in China and not Apple, which continues to enjoy strong demand for iPhone 6. Stock buybacks have always been a point of concern among investors with Carl Icahn known to be strongly pushing for the same. Milunovich remains confident that in the months to come, Apple Inc. (NASDAQ:AAPL) may initiate a series of buybacks as one of the ways of returning value to shareholders.

“They will probably announce it in April, their first quarter announcement. They still have some debt capacity we expect that they will buy about 5% of the stock over the next 12-18 months. As an investor, you are gaining a 2% dividend; they are buying back 5% of the stock. It is a pretty good return even before the appreciation we see,” said Mr. Milunovich.

The iWatch has been a point of concern in Wall Street with many raising questions as to whether it will be enough to propel Apple Inc.(NASDAQ:AAPL) to new heights. Milunovich remains confident that the watch is going to be successful considering Apple’s brand remains powerful in most markets.

Free Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.