Wedbush’s bull case has Apple at $400 by end of 2020

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.

8 Comments

  1. Gregg Thurman said:
    It isn’t often I’m in agreement with a Wall Street analysis of Apple. Ives is one I respect and trust.

    0
    January 6, 2020
  2. Gregg Thurman said:
    Despite the concerns emanating from the media and WS, the market has shaken off fears of a US/Iran war.

    Currently, AAPL is at $299.29, UP $1.86 from Friday’s Close, having rejected the day’s intraday low of $292.75.

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    January 6, 2020
  3. Gregg Thurman said:
    From MarketWatch: “Needham analyst Laura Martin downgraded Apple (AAPL) to Buy from Strong Buy with a price target of $350, up from $280. The analyst cited the stock’s 84% rally in 2019 for the downgrade. However, Martin said Apple remains a “Conviction List pick” for 2020. Apple has direct relationships with 900M of the wealthiest consumers in the world and is transitioning to a recurring-revenue business model, which is driving multiple expansion, Martin told investors in a research note.”

    Needham’s Laura Martin is another analyst I trust.

    Could $350 be the new normal?

    0
    January 6, 2020
    • David Emery said:
      Was there any rationale for “Buy” vs “Strong Buy”?

      0
      January 6, 2020
  4. Gregg Thurman said:
    Unlike Friday, in after-hours trading, AAPL is holding up very well.

    0
    January 6, 2020
  5. Gregg Thurman said:
    Does Goldman Sachs have a new AAPL analyst? I read a report today (Business Insider) that quotes David Kostin on Apple’s prospects for the next 2 – 5 years (he doesn’t like them).

    0
    January 6, 2020

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