Apple Update: Apple Car Delayed, and a Big Price Target Bump Ahead of Earnings

apple inc.Apple Inc. (NASDAQ:AAPL) reports earnings after the bell tomorrow, but a couple of big news items this morning promise to move the stock as well in coming days and weeks.

Apple Car Delayed?

According to a report from technology publication The Information, the long-rumored Apple Car has suffered a setback and may not be released until 2021. Citing sources close to the development of the car’s software, Apple was originally aiming for a 2020 release.

The heart of the delays is a lack of technological infrastructure needed to handle the enormous amount of data needed for the car’s autonomous (self-driving) feature. Apple reportedly wants to handle all aspects of self-driving in-house, meaning it needs big improvements its cloud server lineup.

AAPL is notoriously secretive about its products, especially for brand new product lines such as a television or car (the company has reportedly scrapped the idea of ever releasing a TV set after several years of development). As such, don’t expect to hear anything about the Apple Car from the company until it’s actually ready for a release, which is still probably several years away.

A Big Price Target Boost from Maxim Group

Analysts at Maxim Group lifted their price target on AAPL from $157 to $168, noting the company is “on the precipice of multi-year investment upcycle.” That new target represents a massive 70% update to the stock’s Friday closing price of $98.53.

Although Maxim doesn’t expect anything big this quarter from the company (even calling it a “lame duck” quarter), the firm sees big gains coming for the stock over the next several years, driven by the launch of several new products and a big upcoming iPhone upgrade cycle.

Apple shares fell $0.35 (-0.35%) to $98.31 in morning trading Monday. The stock has fallen nearly 6.5% year-to-date.

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Stay tuned for more Apple coverage tomorrow, when we’re take an in-depth look at the latest earnings results and much more. As we noted recently, AAPL is one of four companies whose Q2 reports will determine the direction of the markets over the next several months.

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