Apple (AAPL) PT Raised to 'Street High' $450 at Wedbush; Sets $525 Bull Case

(Updated - July 13, 2020 6:18 AM EDT)

(updated to add analyst comments)

Wedbush analyst Daniel Ives raised the price target on Apple (NASDAQ: AAPL) to a 'Street High' $450.00 (from $425.00) while maintaining an Outperform rating. The analyst also established a Bull Case of $525. The analyst sees the demand picture improving with the iPhone 12 right around the corner.

The analyst commented, "We believe during 2021 Apple will be the first $2 trillion valuation given the 5G tailwinds and services momentum potential over the coming years. In particular, we are seeing a continued demand snapback in China during the month of June and early July despite some speed bumps and the stage is setting up for a massive pent up iPhone 12 cycle heading into the Fall in this key region as well as globally. 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. We believe in China alone between 60 million to 70 million iPhones are in the window of an upgrade opportunity over the next year with Apple going aggressively at all price points (SE, iPhone 12) to cement its installed base despite competitive pressures from domestic players. Our recent Asia checks and supply chain contacts are giving us increasing confidence in the iPhone 12 growth story with strong underlying momentum into CY21 on the heels of iPhone 12 which remains the linchpin to our "5G super cycle thesis" on Apple. The services business we assign a $600 billion to $650 billion valuation range given the increasingly importance of this key revenue stream that is getting a new appreciation by investors during this COVID-19 pandemic, as Cook & Co. continue to flawlessly execute on the vision."

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