Apple (AAPL) PT Raised to 'Street High' $600 at Wedbush, Sets $700 'Bull Case'

(Updated - August 26, 2020 6:26 AM EDT)

Wedbush analyst Daniel Ives raised the price target on Apple (NASDAQ: AAPL) to a 'Street High' $600.00 (from $515.00) while maintaining a Outperform rating. The firm also set a new "bull case" of $700.

Ives commented, "While the soft macro and COVID backdrop are weighing on near-term consumer demand trends, Apple has a "once in a decade" opportunity over the next 12 to 18 months as we estimate roughly 350 million of Cupertino's 950 million iPhones worldwide are in the window of an upgrade opportunity. China remains a key ingredient in Apple’s recipe for success as we estimate roughly 20% of iPhone upgrades will be coming from this region over the coming year. To this point we are seeing considerable strength from the China region over the last few months with positive trends heading into the Fall, an impressive trajectory we expect to continue heading into the next 6 to 9 months. Despite the noise, based on our recent discussions with contacts within the Beltway we strongly believe the WeChat ban will not negatively impact or disrupt Apple's iPhone ecosystem within the key China market. Taking a step back we believe iPhone 12 represents the most significant product cycle for Cook & Co. since iPhone 6 in 2014 and will be another defining chapter in the Apple growth story looking ahead despite a softer consumer spending environment in our opinion. We still believe many on the Street are underestimating the massive pent-up demand around this supercycle for Apple, which remains the opportunity for the bulls heading into 2021 as this monetization engine heads into its next gear."

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