Atlantic Equities Reinstates Apple (AAPL), Upgrades to Overweight; 'Product business underappreciated'

(Updated - October 26, 2020 6:36 AM EDT) (updating comment)

Atlantic Equities analyst Ianjit Bhatti reinstates coverage on Apple (NASDAQ: AAPL), upgrades from Neutral to Overweight with a $150 price target. Bhatti said the company's product business is "underappreciated."

The analyst comments "Having created an enduring premium consumer electronics brand, we believe that Apple's product business should be valued in line with other premium and luxury consumer stocks, rather than traditional computer peers. Furthermore, we believe that Apple has a number of levers that will enable it to grow product revenues with a ~12% FY20-FY22 revenue CAGR, and we increase our FY22 GAAP EPS forecasts ~3% above consensus."

The analyst added that iPhone 12 product segmentation provides a tailwind to ASP and will drive smartphone market share gains.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $113.54 yesterday.

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