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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 a previous estimate of $ 160.
- The company is expected to breach Wall Street estimates when it releases its first quarter results Wednesday.
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Apples The share price could rise up to 25% on “mind blowing” iPhone sales and strong demand from China, Wedbush analyst Dan Ives said in a statement Monday.
Ives raised his 12-month price target on Apple to $ 175 from a previous estimate of $ 160, representing a potential 25% upside from its current level of $ 139 per share.
The iPhone manufacturer is expected to reveal this first quarter results Wednesday 27 January after the closing bell. The robust earnings should confirm the iPhone 12’s “supercycle hype” as the company is expected to easily beat Wall Street estimates this week, Ives wrote.
Wedbush predicts that Apple will see iPhone unit shipments increase 5% in the range of 60 to 70 million for the March quarter and in the low range of 40 million for the June quarter with some upward bias.
“We haven’t seen a launch bullish trend like this in several years for Apple and the only similar iPhone trajectory would have been the iPhone 6 in 2014 based on our analysis,” Ives said.
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Wall Street expects Apple to ship around 220 million units of iPhones by 2021. But in a bullish scenario and based on the company’s current trajectory, Wedbush said the company has the potential to sell over 240 million units. this year. More specifically, “250 million could be in the cards – an astonishing figure,” the analyst wrote.
That would have easily beat Apple’s previous sales record of 231 million iPhones in 2015.
“With our estimate that 350 million to 950 million iPhones worldwide are currently in the window of an upgrade opportunity, we believe this will result in an unprecedented upgrade cycle for Cook & Co. and represents a moment. ‘ sweeping your legs’ against the persistent bear camp, ”Wedbush said.
Ives predicts that around 20% of iPhone upgrade demand comes from China, confirming 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 approaching 2021,” he said.
Although the analyst has maintained an Outperform rating on Apple stock, he said the company could reach a market cap of more than $ 3 trillion this year if it continues to deliver at its current pace.
On Monday, Apple’s stock traded 2% higher at $ 143 per share in pre-market trading.
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