Deutsche Bank analyst Sherri Scribner initiated coverage of Apple's stock on Friday with a US$650 target price, saying the company likely has some surprises in store. Apple hasn't released any new products yet in 2014, but company CEO Tim Cook has said that there would be big announcements throughout the year.
Deutsche Bank initiates AAPL coverage with $650 12 month target price
In a note to investors, Ms. Scribner said,
While our model does not currently include the benefit of a new product introduction, we believe Apple still has the ability to 'surprise and delight' its customers, therefore any new and successful product would provide upside to the company’s already above-market growth rates.
She added that Apple's revenue is growing faster than the market, according to Barrons.
Investors, analysts, and consumers are all watching closely to see what comes from rumors that Apple is working on wearable technology devices. The company is expected to enter into the market with a wrist watch-type device that links wirelessly to the iPhone and monitors your health and fitness, much like Fitbit and Nike Fuelband.
Apple's wearable devices are generally expected to ship some time later this year.
Ms. Scribner's $650 target price comes with a "Buy" rating. Apple is currently trading at $520.70, down 2.78 (0.53%).