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.
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