Wedbush sets new Street-high Apple price target: $350

2020 will be “the year of the 5G supercycle” for Apple, says analyst Daniel Ives.

From a note to clients that landed on my desktop Sunday:

As we head into the holidays and year-end, Apple is putting the finishing touches on what we would characterize as an historic year for the company and will serve as a launching pad for 2020 to be the “year of an iPhone supercycle”.

A year ago Cupertino was facing major Herculean-like challenges around lagging China demand, tariff escalation on the horizon, increasing competition on smartphones, and trailing Samsung and others in the key 5G race. Investors were throwing in the towel on the name with many on the Street thinking the Apple growth story was over and in the rear view mirror.

Defying the skeptics, Cook in his finest hour in our opinion led Apple to successfully battle through China growth struggles, settle its long standing lawsuit with Qualcomm (and acquire Intel’s Smartphone modem business to catalyze its 5G efforts), develop and bring to market its trifecta of iPhone 11s which has been a major consumer success out of the gates, and most importantly play a game of poker with the tariff China black cloud that worked out in a Picasso-like fashion for Apple.

Maintains Outperform rating, raises price target to $350 from (previous Street-high) $325. 

My take: There’s always one guy.

13 Comments

  1. Paul Brindze said:
    Hopefully he jolts everyone awake for tomorrow. 🙂

    0
    December 22, 2019
  2. Jerry Doyle said:
    What’s more important, Daniel Ives is correct!

    Laissez le bon temps rouler!

    Laissez le bon temps rouler!

    Je dis, laissez les bons moments rouler!

    Geaux  Geaux  Geaux  et geaux LSU Tigres!

    0
    December 22, 2019
  3. Gregg Thurman said:
    My take: There’s always one guy…that knows what he is talking about.

    0
    December 22, 2019
  4. Fred Stein said:
    Among Steve Jobs many gifts, was his ability to attract the best talent and get them to perform at levels beyond what anyone could imagine. Tim Cook proves it.

    The best is yet to come. As Jerry says, LLBTR. bien sur.

    1
    December 22, 2019
  5. Aaron Belich said:
    …enough with the whatever new tech that will result in a supercallifragilisticexpealidocious-cycle. There will be no new super cycle. That ship sailed when China got served and phablets were approved for release.

    Connectivity will be exploited if the network is there, but I still don’t see blazing fast 5G modems showing up until 2021 in an iPhone. The build out of the networks is nowhere close to being accessible in the largest, most valuable markets in the US, let alone everywhere else Apple sells their wares.

    This will only lead to the fakes calling Apple a failure for not having 5G in 2020.

    2
    December 23, 2019
  6. Paul Brindze said:
    Wow Aaron … I can’t disagree with you more.

    Forget about any analysis about whether there will or will not be enough 5G networks to matter. The marketplace really wants 5G phones .. ASAP

    If you have been living on this planet during the last few years you would have figured out that Tim Cook is too good a CEO (and too honest) to allow all this constant talk about 5G iPhones next year to go on this long without pouring cold water on it if it were not happening.

    So there will be 5G iPhones next year, and there will probably be a whole lot of them sold. But that’s no longer the only reason to invest in AAPL. I don’t know if 350 is the right number, but I am sure that if you are short, you should cover your position as soon as possible.

    0
    December 23, 2019
    • Aaron Belich said:
      The only market asking for 5G, is Wall Street.

      I definitely am not short, not sure where that idea came from.

      And Tim Cook never talks about future products positively or negatively… he doesn’t talk about them.

      And correct, 5G absolutely is not a reason to invest in anyone. There are much better reasons.

      2
      December 23, 2019
      • Gregg Thurman said:
        The only market asking for 5G, is Wall Street.

        All the hype is creating a generation of iPhone buyers that will want 5G when it’s available. If that actually happens in 2021 (vs rumored 2020) those 2020 buyers will buy 5G (even if not available in their area) because they will own that new iPhone for 3 – 4 years, and they won’t want to wait another 3 years to get it.

        So it really doesn’t matter WHEN 5G networks are ubiquitous, the consumer will buy a 5G enabled iPhone for when 5G IS available, and that may be just a month, or two, or three later vs a 5G iPhone release a year later. Besides (and I have no idea how many will consider this) when they upgrade that 2020 iPhone 3 years hence it will have greater resale value as a 5G device (by then 5G will be ubiquitous) than a 4G device. There’s a lot more reasons to ship/buy a 5G iPhone in 2020 than there is to wait until 2021. It’s called future proofing.

        1
        December 23, 2019
        • David Emery said:
          I think Gregg’s right. In the near term, 5G is a buzzword that will have to be acknowledged/satisfied. Could Apple “get away with” a mediocre 5G modem for those very few places that have real very high bandwidth 5G networks, with improvement in 2021 when there’ll be enough 5G to make it actually usable? I’m sure those who do benchmarks will castigate Apple, but they generally do that no matter what.

          0
          December 23, 2019
      • Gregg Thurman said:
        5G absolutely is not a reason to invest in anyone. There are much better reasons.

        If 5G increases revenue (no matter how) then it is a legitimate reason to focus on 5G.

        Myself, I’m focusing on Wearables and Services. Growth in both categories will be substantially higher than iPhone growth (even with 5G capability) and won’t be a bubble dependent on units sold growth.

        0
        December 23, 2019
      • Turley Muller said:
        @ Aaron- totally agree. Analysts hyping this 5G like crazy and don’t understand the appeal for consumers. It’s a going to be a nonevent for at least next couple years. Korea has had 5G for almost a year and 5G devices have been selling so poorly they have had to subsidize them. Consumers have soon little interest in 5G since they are satisfied with LTE. An exec for one of the carriers told the media that there will have to be new services (AR, real-time online games etc) to drive interest in 5G.

        The US has no 5G spectrum other than mmWave which is a joke. AT&T and TMUS are having to use spare LTE spectrum for nationwide coverage. Verizon can’t afford to take spectrum from LTE to use for 5G so who knows when it will have broad coverage. Supposedly by end of next year Verizon will have new technology allowing it to use LTE and 5G on same spectrum simultaneously.

        It’s probably late 2021 or 2022 before the US has 5G networks significantly faster than LTE— and then what ? I have a gigabit WiFi and the house and 40-80 Mbs LTE at the bar, and I can’t tell any different really. I never think to myself -I wish I was back home with a fast connection. So, I don’t believe people will be rushing to buy new iPhone because of 5G. I’m more interested what Apple does camera-wise.

        1
        December 23, 2019

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