On Wednesday, Steve Milunovich, an analyst from UBS, stated that Apple's share price has greater than 10% advantage.
"Clearly, the company is not out of the woods," he added. "The quarter was better than expected, with both revenue and margins at the higher end of the range. And yet there are a still a lot of answers that we need to really believe this is a stock that's going to take off."
Milunovich admitted on CNBC's 'Fast Money' that UBS had a US$500 price target on Apple's stocks. The stock of Apple traded at US$442.13 today, up 5.5%. In addition, Milunovich expressed his concern about Apple's sales in Asia which explained the weak results on Apple's recently released quarterly earnings.
"I think there's 12- to 24-month development cycles for Apple, and I think they got caught by the demand for so-called 'phablets,'" he stated. "So, if there is one coming, I would think it's going to be no sooner than mid next year."
The analyst said that the services provided by Apple like iTunes, accounted for roughly US$17 billion in its yearly revenue. He concluded that these services including huge sales from new products would provide support for a US$500 stock price, "based on what we know today."
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