Citi analyst Jim Suva is bullish on Apple and shared with CNBC today that he thinks the company’s wearables category, particularly Apple Watch and AirPods will offer a nice surprise to investors when Apple reports on its holiday quarter.
Suva’s AAPL price target is currently at $300 and he expects the stock to move toward it as 2020 begins. He highlighted that wait times for Apple’s hot products like AirPods Pro are because the company can’t keep up with the strong demand, not production problems.
“Some of their products are selling out and you have to wait to get them,” Suva said on “Squawk Alley,” referencing a “several-week delay” to get AirPods Pro around the holiday shopping season.
“It’s not due to manufacturing issues,” he added. “It’s actually due to strong demand where the company can’t keep up.”
He also called out Apple Watch Series 3 as a very popular product, something we predicted back in November as prices dropped to as low as $129 over the holidays.
The demand for AirPods Pro is closely followed by interest in the Apple Watch Series 3, Suva said.
Apple stock has had an amazing year of growth in 2019, up 80% which makes it the strongest performance seen since 2009. CNBC expects Apple to report its holiday quarter earnings in early February.
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