Yahoo Finance 5G, iPhone 12 Are Becoming Key To Apple's Future: Wedbush
By Sanju Swamy
A Wedbush analyst raised their Apple Inc. (NASDAQ: AAPL) price target Monday as the launch of 5G and iPhone 12 become key factors in the company's growth.
The Apple Analyst: Daniel Ives reiterated an Outperform rating on Apple and raised the price target from $425 to $450.
The Apple Thesis: Wedbush expects Apple will reach a $2-trillion valuation in 2021 because of “5G tailwinds and services momentum potential,” Ives said in a note.
The iPhone 12 is the “linchpin” of Ives' long-term bullish outlook for Apple over the next 12 to 18 months, the analyst said.
See Also: Morgan Stanley Raises Apple Price Target On iPhone Trade-In Opportunity
He named the following as factors in Wedbush's Apple thesis:
Four iPhone 12 models are set to launch with a mix of 4G and 5G; Wedbush expects some versions to be priced under $1,000 despite the added 5G component.
Approximately 350 million of the 950 million iPhones worldwide are in the iPhone 12 upgrade window.
Apple expects to sell 90 million AirPod units because chargers and EarPods will not be included in the iPhone 12 box and packaging.
China is a “key ingredient in Apple’s recipe for success,” with an estimated 20% of iPhone upgrades coming from that market alone, Ives said.
AAPL Price Action: Apple shares were trading 1% higher at $387.48 at the time of publication.
Photo by Daniel Lu via Wikimedia.
Latest Ratings for AAPL
Jul 2020 | Morgan Stanley | Maintains | Overweight | |
Jul 2020 | Wedbush | Maintains | Outperform | |
Jul 2020 | Cascend | Maintains | Buy |
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