Morgan Stanley and JP Morgan have both raised their price targets for AAPL, citing both continued strong sales of the iPhone 12 and expected high demand for the iPhone 13 – among other factors.
Morgan Stanley analyst Katy Huberty has raised her target price for the stock twice in three weeks, most recently to $166 …
PED30 saw the investment notes. Huberty notes the recent strong rise in the stock price, saying three factors explain it.
First, there has been a general flight to quality big tech names in recent weeks, with AAPL, AMZN, FB, GOOGL and MSFT outperforming the S&P 500 by 8 points, on average, since early June.
Second, App Store growth accelerated in the month of June, to +17% (Exhibit 3), with most of the App Store’s largest markets showing a clear acceleration on both a Y/Y and 2-year stacked basis (Exhibit 4), supporting the view of secular services growth.
And lastly, iPhone supply chain data indicates iPhone builds are expected to grow at a mid-to-high teens percentage Y/Y in C2H21, which along with recent share gains further supports our view that iPhone revenue can grow in FY22, and refutes the concerns of iPhone s-cycle declines
JP Morgan is even more optimistic, setting a $175 target for the stock.
Apple supply chain analyst, William Yang, is increasing his iPhone build forecast for CY21 by 9 mn to factor in resilient demand for current/legacy iPhones, even as he maintains his build forecast for the upcoming iPhone 13.
We are increasing our iPhone volumes expectations modestly in conjunction with the raise to the build estimates, but more importantly, see a path to upside for the shares medium- term both on account of upside to iPhone 12 estimates as well as low investor expectations heading into the iPhone 13 launch.
The combination of upside from iPhone 13, stemming from a better upgrade rate to 5G devices and a larger installed base, as well as upside from the launch of iPhone SE3 in calendar 2022 could set Apple up for an earnings upgrade cycle over the next 6-12 months.
AAPL has been enjoying a streak of record-high stock values as it nears $150.
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