BTIG Raises Apple's Price Target, But Stock Could Be 'Ripe' For Near-Term Sell-Off

Ahead of Apple Inc. AAPL's scheduled presentation Monday, BTIG turned more bullish on the stock over the longer term.

The Analyst

BTIG's Walter Piecyk maintains a Buy rating on Apple with a price target lifted from $189 to $220.

The Thesis

Apple's event titled "It's Show Time" could detail its streaming video ambitions. With the stock up 34 percent since its early January, however, makes it "ripe for a sell-off," Piecyk said in a research report. It's likely Apple has little new it can say Monday to "satisfy media skeptics" and the "haters" could claim victory with a near-term sell-off.

Piecyk said some of the criticism directed towards Apple's streaming video plans will likely be valid as creating compelling content is expensive and "very different than making phones." But investors should keep in mind Apple is entering the new space with $130 billion in cash, $65 billion of free cash flow per year along with 900 million iPhone users globally.

While the multiple financial and user metrics won't guarantee success, Apple has hired notable Hollywood A-list talent, including Steven Spielberg, Oprah Winfrey and Kevin Durant, among others. The company is likely to highlight Monday how its early partners are "happy and thriving" and management is willing to spend the necessary cash to be successful.

Price Action

Shares of Apple were trading around $192.48 early Monday morning.

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