Call of the week: Mizuho thinks Apple is heading for another record high

Yahoo Finance’s call of the week is Mizuho’s price target hike on Apple’s stock. Mizuho remains bullish on the tech giant, despite its lackluster fiscal second-quarter results released after the bell on Tuesday. The firm reiterated its buy rating on the stock and lifted its price target by $10 to $160 per share.

The big headline miss in Apple’s quarterly report was its iPhone sales. The company shipped 50.8 million phones during the first three months of the year, below analysts’ estimates of 52 million. Revenue also fell short of expectations. Apple posted sales of $52.9 billion versus analysts’ consensus of $53.1 billion, according to Bloomberg.

But Mizuho analysts aren’t fazed by the results. In fact, they say Apple’s miss on its key metric, iPhone sales, could be an encouraging sign for the company. In a research note earlier this week, Mizuho wrote, “We note that the company experienced a drawdown of inventory in March and is likely experiencing a pause as a result of people waiting for the new iPhone. We view this as a potentially positive sign as it can create significant pent-up demand for the new device once it launches. We continue to expect a strong iPhone 8 cycle during the upcoming holiday season.”

Mizuho’s not alone with its bullish call. Apple’s stock has a total of 39 buys, 9 holds and one sell rating, according to Bloomberg. Drexel Hamilton, with a price target of $185, has the highest on the Street.

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