Jefferies hikes Apple target $18.75 to $135

From a note to clients by analyst Kyle McNealy that landed on my desktop Thursday:

As we head into Apple’s 5G cycle, we’ve reviewed the setup in key regions (Americas, Europe, China). We think the current environment is very positive for Apple with a lot of room for growth and several catalysts. Regional growth drivers include: 1) trend reversal for handset upgrade rates and carrier device subsidies in the US; 2) share gains for Apple versus Huawei in Europe due to US trade restrictions; and 3) China survey data that indicates future share gain for Apple and that there’s a massive legacy device installed base looking to upgrade.

Maintains Buy rating, raises price target to $135 from split-adjusted $116.25.

My take: Room for growth is good.

4 Comments

  1. Gregg Thurman said:
    Just read that Apple’s trainers for Fitness+ will range in age up to their 60’s. Smart. The people that need it the most are 50 and over.

    Fitness+ is going to drive a lot of Premium bundle upgrades.

    4
    September 17, 2020
  2. Gregg Thurman said:
    In today’s Neil Cybart “Time Flies” Event review he spoke of Spotify’s inability to produce HW to support Apple-like Services deemed necessary by the consumer.

    I’ve always seen Spotify as a one trick pony, a good one but still limited by that one trick. I can see the time coming when someone in the Android world buys Spotify to augment their smartphone sales. With Apple and Amazon (and whoever buys Spotify)
    giving music away for free in their respective bundles, there is no oxygen left for the standalone music business.

    0
    September 17, 2020
    • David Drinkwater said:
      There will always be underground music.
      It many not be profitable, but it will always be there.

      0
      September 18, 2020

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