Apple (AAPL): Wedbush Assigns a New Street-High $200 Price Target Despite Bloomberg Report Suggesting Slowing iPhone 13 Demand
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Wedbush analyst Daniel Ives raised the price target on the Outperform-rated Apple (NASDAQ: AAPL) stock to $200.00 per share from the prior $185.00 today.
A new Street-high price target reflects Ives’ confidence in the iPhone 13 growth cycle into 2022.
“Our iPhone 13 checks continue to be much stronger than expected with our belief that Apple is now on pace to sell north of 40 million iPhones during the holiday season despite the chip shortage headwinds. The focus of the Street has been on the lingering chip shortage for Apple (and every other tech and automotive player), however the underlying iPhone 13 demand story for Cupertino both domestically and in China is trending well ahead of Street expectations in our opinion,” the analyst said in a client note.
The analyst believes Apple offers safety to investors from the ongoing fears related to the Omicron variant. Despite the fact that Apple shares trade near record highs, Ives still sees “very favorable” risk/reward at current levels.
“We believe on a SOTP valuation Apple is well on its way to being a $3 trillion market cap during 2022 as the Street catches up to this growth story,” the analyst added.
A move from Ives comes just a few hours after Bloomberg reported that Apple is telling suppliers it is experiencing weakening demand for the iPhone 13 lineup as we head into the holiday season.
Bloomberg reported earlier that Apple slashed the iPhone 13 production target by as many as 10 million units this year as it faces supply chain bottlenecks.
The Cupertino-based giant was hoping that the supply chain situation will get better next year. However, the company started informing suppliers this may not be the case.
Apple shares are down 2% in pre-open Thursday after the Bloomberg report came out.
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