One of Wall Street’s most anticipated 2020 events is set to take place tomorrow, October 13. Apple (AAPL) will hold its annual iPhone launch event and is expected to unveil the iPhone 12 – its first to boast 5G capabilities.
For months now, the media has speculated on Apple’s flagship product’s new line up. Apple is expected to introduce 4 new iPhone 12 models, including a 5.4- inch iPhone 12 mini, a 6.1-inch iPhone 12, a 6.1-inch iPhone 12 Pro and a 6.7-inch iPhone 12 Pro Max. According to media reports, the iPhone 12 models could hit the shelves shortly after this week’s event, while the iPhone 12 Pro models may be pushed back to a November release.
In addition to 5G, features and aesthetics of the iPad Pro are expected to be added to the iPhone 12 collection. These include flatter and pronounced enclosure edges and a LiDAR Scanner on the iPhone 12 Pro models for augmented reality purposes.
Monness analyst Brian White believes the new products should usher in a new era for Apple, although it will be more of a subtle transition, and defined by the current macro environment.
“Ultimately, we anticipate the advent of 5G networks to drive iPhone upgrades, ushering in new capabilities and services on Planet Apple; however, we believe this will prove to be an evolution, not a revolution… The current COVID-19 crisis has created havoc across multiple industries, resulting in an uncertain future, creating a greater allure for large, well-managed, tech companies with strong balance sheets that benefit from digital transformation, such as Apple,” White commented.
White sticks to a Buy rating on AAPL and has a $144 price target for the shares. Investors are looking at upside of 16%, should White’s target be met over the following months. (To watch White’s track record, click here)
Overall, ahead of the anticipated launch, the Street remains positive but with a cautious slant. The stock has a Moderate Buy consensus rating based on 24 Buys, 8 Holds and 3 Sells. With an average price target of $122, the analysts expect the stock to stay range-bound for the foreseeable future. (See Apple stock analysis on TipRanks)
To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
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.
