Apple shares can rally in 2017 for five reasons, according to Citi Research, which reiterated its buy rating on the company.
Analyst Jim Suva gave the following list in a note to clients Tuesday:
- "iPhone 8 Super Upgrade Cycle driven by newer form factors driving a stronger upgrade relative to the prior 2 cycles"
- "Tax reform benefit from reduction in corporate taxes and cash repatriation"
- "Sticky user base which drives continued services revenue growth"
- "Enterprise push mid term, Applewood longer term"
- "Attractive valuation – Shares trade at a slight discount to their 4 year median multiples despite improving fundamentals ahead"
Apple shares are underperforming the market in 2016 up 7.6 percent, compared to a 10.4 percent gain for the S&P 500.