Having recently reclaimed its $3 trillion valuation, there’s no reason to think the Apple (NASDAQ:AAPL) juggernaut is about to stop there.
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In fact, looking ahead to the coming year, Wedbush’s Daniel Ives, a 5-star analyst rated in the top 2% of the Street’s stock pros, expects the tech giant will see out 2024 claiming another milestone by becoming the world’s first $4 trillion market cap company.
Before that takes place, however, there’s the upcoming holiday season to take care of and here Ives thinks Apple is about to surprise to the upside.
“We believe Apple is heading into a strong holiday season over the coming weeks that should translate into iPhone 15 growth that exceeds Street estimates for the December quarter on the heels of strong upgrade activity within the US and China markets that is resilient despite the bear noise,” the 5-star analyst explained.
In the face of recent concerns regarding iPhone shadow government bans in China, according to Ives’ recent Asian supply chain checks, heading into the holiday season/early 2024, there haven’t actually been any “negative revisions” around iPhone units. Ives maintains the 220 million to 230 million iPhone 15 units “bogey” for F2024 is achievable and there could be upside to that forecast if the current pace of upgrade activity Ives is seeing holds steady into the March/June quarters.
But it’s not only Ives’ confidence in a strong iPhone 15 cycle driving his bullish take. On a standalone basis, Ives thinks the Services segment is worth $1.5 trillion to $1.6 trillion, claiming a re-rating is a “key dynamic” for the stock in the upcoming quarters. “With Services revenue back to steady double-digit growth and iPhone units that should be in the ~225 million range for FY24 we believe the ‘growth demise story’ of Apple being spun by bears is a dynamic we have seen constantly over the past decade and this is just another chapter in that book,” he summed up.
To this end, Ives reiterated an Outperform (i.e., Buy) rating on Apple shares to go along with a Street-high $250 price target. The implication for investors? Upside of 29% from current levels. (To watch Ives’ track record, click here)
Among the analyst community, the majority are on Apple’s side. Factoring in 23 Buys ans 8 Holds, the tech giant has a Moderate Buy consensus rating. The forecast, however, calls for only modest upside of ~5% for the coming year, considering the average target stands at $203.07. (See Apple stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
