Apple (AAPL) PT Raised to $350 at Wedbush; iPhone 12 to Start Road to Recovery

(Updated - May 12, 2020 7:04 AM EDT)

Wedbush analyst Daniel Ives raised the price target on Apple (NASDAQ: AAPL) to $350.00 (from $335.00) while maintaining an Outperform rating.

• Ives said iPhone 12 is the light at the end of the tunnel for Apple
• We conservatively assume only the installed base consumers currently in the window of an upgrade opportunity that have not upgraded their iPhones in more than 42 months purchase a new phone over the next 18 to 24 months. Currently we estimate that ~350 million of Apple's 925 million iPhones worldwide are in this upgrade window, as we model going forward in a more draconian scenario that minimal new smartphone activity takes place in the coming quarters.
• Our scenario assumes the 5G iPhones do not get released this Fall (we see a 10%-15% chance of the iPhone 12 launch happening in October) due to the soft economic conditions and the supply chain in Asia still on a path to normalization. Our recent Asia checks and supply chain contacts are looking at iPhone units in the 165 million to 185 million range for CY20 with strong underlying momentum into CY21 on the heels of iPhone 12. From a timing perspective, we continue to believe there are 4 models being discussed for iPhone 12 with a mix of 4G/5G that will likely be launched in the November/early December timeframe ahead of holiday season.

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