Ben A. Reitzes, an analyst over at Barclays, made waves today when he increased his Apple (APPL) stock price target from $465 to $525. As far as reasons for the jump, Reitzes believes Apple will secure a ton of investors and customers by talking about new products again, starting with the annual WWDC conference in June.
Apple is expected to demo iOS 7 as well as the next version of OS X at the June 10 keynote event, but the company is also rumored to be working on the next generation of the iPhone, a cheaper iPhone for emerging markets, new iPads, some sort of iWatch, and an Apple-branded HDTV.
It is anticipation for these devices that Reitzes says strengthens Apple’s hold on the market.
“With these events, combined with improving builds in the supply chain, we believe investors will become less concerned with the September product transition quarter and start to anticipate a large holiday quarter,” he said.
The Barclays analyst also has good feelings about Apple’s gross margins. He was initially worried what a low-cost iPhone would do to the company, but he has since changed his opinion about a “worst-case” scenario in 2014.
And finally, Reitzes claims that he “didn’t fully appreciate” just how important Apple’s capital reinvestment program is. In case you’re not familiar, this newly announced initiative will have Apple dropping a cool $100 billion through 2015 on share buybacks as well as a larger quarterly dividend. Reitzes explains that, based on the results of buybacks of tech companies in the past, Apple has good things in its future. For the sake of our favorite gadgets, let’s hope he’s right.