Apple (AAPL) has fallen behind Amazon.com (AMZN) and Alphabet's (GOOGL) Google in the smart home market. But don't rule out a comeback from the consumer electronics giant, a Wall Street analyst said Tuesday.

D.A. Davidson analyst Tom Forte reiterated his buy rating on Apple stock with a 12- to 18-month price target of 245. Apple stock rose 0.3% to 170.93 on the stock market today.

Apple's recent hiring of Sam Jadallah, a former Microsoft (MSFT) executive, to lead its smart home initiatives is a positive step, Forte said. CNBC reported Saturday that Apple hired Jadallah, who recently ran a smart lock startup called Otto.

"Apple made a key hire to advance its Internet of Things efforts (such as connected homes)," Forte said in a note to clients. "While we consider Apple to be clearly late to the game, when comparing its initiatives, to date, against those of Amazon and Google, we are encouraged by the move."

Smart Home Push Starts With Smart Speakers

Amazon and Google entered the smart home market with voice-controlled smart speakers. They have since added other connected products like security cameras. Amazon makes Echo smart speakers with its Alexa voice assistant. Alphabet makes Google Home speakers with its Google Assistant. Apple entered the market last year with its HomePod smart speaker with Siri voice controls.

At a minimum, the new leadership for Apple's smart home initiatives should improve the company's efforts in one of the most important emerging areas in consumer technology, Forte said.

"At the maximum, Apple's track record — from the Mac to the iPod to the iPhone to the iPad — illustrates its ability to win categories (such as the highest margin revenue from them) despite not being the first to the opportunity," Forte said.

(Source: investors.com)