Over a year after peaking at $705, Apple (AAPL 1.25%) might be able to reclaim its former glory yet. At least that's what Evercore Partners thinks, which has raised its price target to $700 citing product refreshes that promise to reinvigorate momentum. On top of that, Evercore sees gross margins stabilizing. Apple's profitability suffered over the past year as Apple took greater warranty and depreciation expenses, and has also begun deferring a greater portion of revenue because of free software. That might mean gross margin has some upside to it.
The Street-high still belongs to Cantor Fitzgerald analyst Brian White, who has assigned a $777 value on Apple. His "Apple Barometer" suggests that supply-chain activity remains high, which bodes well for Apple. Even if Apple were to fetch a market multiple, shares would be worth more than $700. Investor sentiment would have to return first, though, which is easier said than done.
In this segment of Tech Teardown, Erin Kennedy discusses the growing positive sentiment for Apple stock with Evan Niu, CFA, our tech and telecom bureau chief.
