Apple (AAPL) PT Raised to 'Street High' $515 at Wedbush, and Sets $600 Bull Case on iPhone 12 Super Cycle

August 9, 2020 5:38 PM

Wedbush analyst Daniel Ives raised the price target on Apple (NASDAQ: AAPL) to a 'Street High' $515.00 (from $475.00) while maintaining an Outperform rating and set a $600 bull case.

Ives said new Asia supply chain checks showed a "discernible uptick" in forecasts for iPhone 12, which he said bodes well for demand trends heading into this super cycle October launch.

The firm was previously expecting 4 models with a mix of 4G/5G for the iPhone 12 unveil, however now, based on supply chain checks, they are expecting only 5G models for the Fall launch. A new 4G model could potentially hit the market with lower price points in early 2021, he added.

"From a 5G perspective, there will be a US and a non-US version introduced," Ives added. "The US version will have mmWave technology after some technology wrinkles appear to have been ironed out by Apple and its suppliers, which is a clear positive heading into this pivotal launch."

The analyst sees a "super cycle" and $2 trillion market cap both on the horizon near-term.

"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," Ives commented. "China remains a key ingredient in Appleā€™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, a dynamic we expect to continue heading into the next 6 to 9 months."

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