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- Apple shares could rise 25% thanks to robust iPhone shipments and strong demand from China, Wedbush said.
- Analyst Dan Ives raised his 12-month price target on Apple to $ 175 from an earlier estimate of $ 160.
- The company is expected to break Wall Street estimates when it releases its first quarter results on Wednesday.
- Sign up here for our daily newsletter, 10 things before the opening bell.
Apple’s stock price could climb up to 25% due to “booming” iPhone sales and strong demand from China, Wedbush analyst Dan Ives said in a note Monday.
Ives raised his 12-month price target on Apple to $ 175 from an earlier estimate of $ 160, which is a potential rise of 25% from its current level of $ 139 per share.
The iPhone maker is expected to release its first quarter results on Wednesday January 27 after the closing bell. Strong earnings should confirm the iPhone 12’s “hype” as the company should easily beat Wall Street estimates this week, Ives wrote.
Wedbush forecasts that Apple will see its iPhone shipments increase 5% in the 60-70 million range for the March quarter, and in the 40 million range for the June quarter, with an upward bias.
“We haven’t seen such a bullish launch trend in a number of years for Apple and the only similar iPhone trajectory would be the iPhone 6 in 2014 based on our analysis,” Ives said.
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Wall Street expects Apple to supply around 220 million iPhone units by 2021. But in a bullish scenario, and based on the company’s current trajectory, Wedbush said the company has the potential to sell. more than 240 million units this year. Specifically, “250 million could be in the cards – a startling number,” the analyst wrote.
That would easily break Apple’s previous record of selling 231 million iPhones in 2015.
“With our estimate that 350 million of the world’s 950 million iPhones are currently in the window of an upgrade opportunity, we believe this will translate into an unprecedented upgrade cycle for Cook & Co. and represents a moment of “sweeping the leg” against the persistent bear. camp, ”Wedbush said.
Ives expects around 20% of iPhone upgrade demand to come from China, claiming the region’s key role in Apple’s success. “At this point, we are seeing considerable strength from the Chinese region so far with positive trends for 2021,” he said.
While the analyst maintained an outperformance rating on Apple stock, he said the company could reach a market cap of over $ 3 trillion this year if it continues to execute at the current rate.
Apple stock traded 2% higher at $ 143 per share in pre-trade on Monday.
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