From a note to clients by analyst Michael Olson that landed on my desktop Friday:
While 5G is on the horizon and this year’s iPhone lineup did not include any dramatic improvements, our survey of domestic iPhone users suggests upgrade rates are up slightly y/y. We are modeling for flat y/y iPhone revenue in FY20 (consistent with consensus estimates), so a slight improvement in upgrade rates could signal potential for upside. Looking into the coming year, Apple is in the midst of a perfect storm, with current iPhone performing at-or-above plan, non-iPhone (especially wearables and services) trending better than expected through the end of FY19 and growing anticipation for 5G iPhones that will be coming late in the fiscal year.
Maintains Overweight rating, raises price target to $290 from $270.
My take: Ballsy move with the stock at all-time highs.