Apple's Multiple Expansion
Apple stock simply realized a multiple appreciation from 14 times to 22 times, but at the same time the Street's estimates didn't change much, the Deutsche Bank analyst said.
The multiple expansion reflects the belief that iPhone demand wasn't as bad as many assumed it to be at the start of 2019, Ong said.
"A lot of bullishness" remains for the stock in 2020 and beyond from the potential launch of a 5G device, he said.
Nevertheless, Deutsche Bank continues to rate Apple's stock with a Hold rating since it trades at a premium multiple versus the S&P 500 index.
Apple's stock has traded at a discount to the index over the past five years.
Not Everyone Agrees On Apple
While Deutsche Bank is sitting on the sidelines, Jefferies raised its price target on Apple from $285 to $350.
This matches a Street-high estimate for the iPhone maker and is based on a strong finish to 2019, including Cupertino's best Black Friday traffic in three years.
Apple shares were trading 2.14% higher at $309.65 at the time of publication Thursday.
Apple's Strong Holiday Sales Boost Shares
This Day In Market History: Apple Introduces The iPhone
Photo courtesy of Apple.
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