Apple (AAPL) PT Raised to $405 at Jefferies; 'Incrementally Confident' in 5G Cycle

Jefferies analyst Kyle McNealy raised the price target on Apple (NASDAQ: AAPL) to $405.00 (from $370.00) while maintaining a Buy rating, saying they are incrementally confident in Apple’s opportunity with the 5G cycle.

"Specifically, we feel better about Apple’s ability to hold retail pricing for the fall 5G launch relatively consistent with last year while maintaining solid gross margin performance," McNealy said.

The analyst highlighted:

• Brick and Mortar Coming Back in the Mix
• We Expect Fall 5G Launch Pricing to be Largely Consistent with Last Year
• mmWave on the top Two Apple Devices – With Upside… We expect that there will be four main models in the iPhone 12 series with the two higher-tier Pro models including mmWave.
• Better Wholesale Pricing and Wireless Carrier Device Subsidies Can Help Too… Retail wholesale margin was near all-time highs for the iPhone 11 series this year at ~6.7%. If wholesale pricing becomes more favorable to Apple, they can get some additional revenue without raising the advertised retail price.

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