No way, says analyst Daniel Ives, that 2020’s good news is already baked into Apple’s share price,
From a note to clients that landed on my desktop Monday:
Many investors are asking us: Is all the good news baked into shares after an 80%+ historic upward move over the last year?
The answer from our vantage point is a resounding NO, as we view only the first part of this massive upgrade opportunity leading to a transformational 5G “super cycle” with 200 million to 220 million iPhone units now the new line in sand for demand based on our recent Asia supply chain checks.
Coupling this dynamic with a metamorphosis-like valuation re-rating by the Street around the company’s $50 billion+ annual services revenue stream is the 1-2 punch to how we ultimately see a stock in the $350 to a new bull case $400 valuation by year-end.
Maintains Outperform rating and, for now, his Street-high $350 price target.
My take: Ives has stayed in front of the Apple pack throughout the 2019 bull run. It’s a strategy others have used in the past. It works to get you on CNBC until it doesn’t.