Analysts expect Apple to grow 15% this year as work-from-home activities boost sales

In a new investors note, analysts at Morgan Stanley anticipate that Apple is expected to grow 15.1% over the next 12 months. Besides the strong sales of the iPhone 12 lineup, the company should benefit from prolonged work-from-home activities as customers are now buying more computers and tablets.

As reported by Business Insider, analysts led by Katy Huberty raised their price target for Apple shares from $144 to $152, which represents a growth of 15.1% compared to last Wednesday’s close. The team believes the tech sector will remain attractive over the next year, so investing in related companies should be safer and more profitable.

There are indications that iPhone sales and service revenue will continue to lead Apple’s profits, although some investors are more conservative with their forecasts.

The 5G-capable iPhones were Apple’s most successful product launch in five years, and demand continues to outstrip supply despite 78 million forecasted shipments in the December quarter, according to the team. Both Morgan Stanley’s fiscal first-quarter and full-year projections for iPhone shipments exceed the consensus forecast.  

Although the iPhone 12 models have been performing well in sales, work-from-home activities may be responsible for increasing Apple’s revenue this year. As more people spend more time at home due to the COVID-19 pandemic, analysts see growth in Mac, iPad, and wearable sales.

Elsewhere in the lineup, the analysts see prolonged work-from-home and remote-learning activity propping up Mac, iPad, and Wearables revenues. Consumer survey data suggests computer and consumer electronic sales hit nine-month highs in the previous quarter as renewed COVID-19 lockdowns forced more people to stay home.

Apple stocks closed at $136.87 with a high of 3.67% on Thursday, and they continue to rise in the after hours.