Analyst Daniel Ives sees more good news for Apple on the horizon.
From a note to clients that landed on my desktop Sunday:
iPhone 12 strength not slowing down; more good news on the horizon. Apple’s stock has taken a breather since its jaw dropping performance in the December quarter came and passed for the Street in late January. That said, we view this as a short term blip in the stock’s upward trajectory as our Asia supply chain checks continue to show robust strength in this iPhone 12 supercycle into the rest of 2021. Given the fundamental strength we are seeing for this supercycle, coupled by a further re-rating on the horizon, we believe Apple will hit $3 trillion in market cap by year-end.
Maintains Outperform rating and Street-high $175 price target.
My take: Music to the bulls’ ears. Ives’ specialty.
Buy and hold.
Analysts are grossly too cautious in forecasting unit sales growth of the 12 and the concomitant service rev growth. I don’t buy that Apple is a stay at home name. It is one of the few that straddles as a stay at home and reopening/GDP explosion play. There is a better than 50% probability Danny Ives’ price target will be $20-$30 underwater by February 2022, in my view. 40 x $5.15 =
Where is Brian White when you need him? : )
“Apple prospers as top smartphone seller amid industry decline”: http://appleinsider.com/articles/21/02/22/apple-prospers-as-top-smartphone-seller-amid-industry-decline
will be big achievement especially regarding price development.