After a stodgy period, Apple (AAPL) stock has been gaining momentum recently. With shares up 21% over the past 3 months, the year-to-date performance has materially improved.
There’s also a big catalyst ahead too, which Wedbush’ Daniel Ives believes is partly what makes the giant from Cupertino a “top tech name to own.”
“The invites are out; iPhone 13 launch around the corner next week,” Ives noted.
Ives’ “enhanced confidence” in the iPhone 13 product cycle is based on Asia supply chain checks, in which the iPhone 13 makes up 35%-45% of the total 130-150 million iPhone builds in Q3.
Specs wise, Ives is confident Apple fans can look forward to an iPhone 13 boasting an “eye-popping” 1 terabyte storage option. This is double the amount of the current 512 GB capacity on offer with the highest Pro unit. The new model and will also include several other “key enhancements” with all iPhone 13 models possessing Lidar capabilities.
There’s “massive pent-up demand” amongst Apple’s installed base, says the analyst, pointing out that based on his analysis, over the past 3.5 years, roughly 250 million of the current 975 million iPhone owners have yet to upgrade their handsets.
Elsewhere, Ives thinks Apple remains fairly insulated from the regulators’ ire with all things Big Tech, believing the App Store remains a “very defendable moat both in the courts and in the Beltway.” Facebook and Google are both more likely to get caught in the “anti-trust spider web.”
Apple remains the “favorite large cap tech name to play the 5G transformational cycle,” and as such, Ives sticks with an Outperform (i.e. Buy) rating and $185 price target. The implication for investors? Upside of 20%. (To watch Ives’ track record, click here)
So, that’s the Wedbush view, what does the rest of the Street have in mind for Apple? The stock boasts a Moderate Buy consensus rating based on 17 Buys vs. 6 Holds. The average price target is a more modest $166.64, representing 12-month returns of 8%. (See Apple stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
