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.