Oppenheimer hikes Apple target $20 to $125

Apple may gain share, but analyst Andrew Uerkwitz doesn’t expect a “super cycle” by any means.

From a note to clients by analyst Andrew Uerkwitz that landed on my desktop Monday:

We update our model for stronger than expected demand for all things Apple—notably laptops and iPads—due to continued work/school from home dynamics. Additional catalysts include an iPhone cycle that we expect will support 5G.

While we do not expect a “super cycle” by any means, share gains are possible being early in the cycle with 5G, Huawei leaving the market, and previous dampened Wall St estimates due to COVID-19.

On valuation, with low interests, Apple excels as it has a very robust cash flow machine with stated policies toward buybacks and a growing dividend. We do see medium- to longer-term issues, but with no clear negative near-term catalyst, we raise our target.

Maintains Outperform rating, raises price target to $125 from $105. 

7 Comments

  1. Jerry Doyle said:
    It brings a smile to my face to see most WS analysts compelled to acknowledge begrudgingly that Apple is hitting on all cylinders while they search desperately to refrain from the obvious: Apple is on a roll!

    3
    September 15, 2020
    • Gregg Thurman said:
      It brings a smile to my face to see most WS analysts compelled to acknowledge begrudgingly that Apple is hitting on all cylinders

      In another “Great Minds” think alike anecdote, I was going to observe that analysts are starting to sound alike regarding Apple’s future prospects (positive), even if their math doesn’t.

      2
      September 15, 2020
      • Kirk DeBernardi said:
        @ Gregg Thurman & @ Jerry Doyle —

        Lately I have been thinking the same kind of thoughts.

        It’s gotten to the point that when PED posts some analysts rationale of why Apple is going up (or down), it all seems to be some blend of the same gray water. Pick a talking point and regurgitate.

        It’s even reached the point where I don’t even read what their opinions are or begrudgingly do so when I do.

        Best stick to the likes of Neal Cybart, Horace Dediu, John Gruber, etc. to get the pulse on and speak accurately of what this company is really about.

        2
        September 15, 2020
  2. David Emery said:
    I know it’s futile to try to apply logic or arithmetic to ANALyst predictions, but…

    If this guy has AAPL at ‘outperform’ with a a 6% growth in share price, does that mean he’s predicting the broader markets will grow less than 6%?

    0
    September 15, 2020
    • David Emery said:
      Another thought (damn site timed out as I was editing)

      If everyone who currently has a 2+ year old iPhone bought a new one, wouldn’t that be a Super Cycle with substantial upside for AAPL? Apple’s installed base is significant, particularly when it comes to -profit- (when compared to the large numbers of cheap Android phones….)

      0
      September 15, 2020
  3. Jerry Doyle said:
    A target price of $150 is a “no-brainer” by earnings call Q1 2021. A target price of $175 is understood and expected by those who believe in Apple’s ability to move the needle. Apple is on-a-roll!

    2
    September 15, 2020
  4. Miguel Ancira said:
    And that is without considering the glasses.

    I am all in.

    0
    September 15, 2020

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