logo-loader
Tech
Apple Inc.

Wedbush hikes Apple target price to $325 while maintaining 'Outperform' rating

Analyst Daniel Ives said Apple can expect strong iPhone growth heading into 2020

Apple logo
Wedbush said iPhone units could exceed 190 million for FY20

Wedbush has raised its price target for Apple Inc (NASDAQ:AAPL) to $325 pr share from $300 while maintaining an 'Outperform' rating on the tech giant. 

In a note issued Friday, Wedbush analyst Daniel Ives said Apple can expect strong iPhone growth heading into 2020. He pointed out that iPhone units could exceed 190 million for FY20 based on the demand trajectory.

"While shares of Apple are up 65%+ year to date, we believe the tech stalwart is still in the midst of a renaissance of iPhone growth heading into 2020 that will further catalyze the stock higher as it gets re-rated from the Street,” Ives wrote in a note to clients.

READ: Apple throws hat into increasingly competitive streaming ring with the debut of AppleTV+

“Apple continues to be one of our favorite tech names heading into the next 12 to 18 months as the combination of a super cycle demand driver between iPhone 11/5G lineup of smartphones and a robust $60 billion services platform by FY21 will be the linchpins of the Apple growth story and stronger fundamental outlook looking ahead and thus command a higher multiple from current levels in our opinion," he added

The analyst also said service is the next leg of growth for Apple, noting that Apple and Disney could displace roughly 10% of Netflix's installed base.

"If Apple executes with minimal speed bumps and aggressively acquires content given the company’s massive installed base and unmatched brand loyalty we believe reaching the 100 million subscriber number in the medium term (3-4 years) is a realistic goal that could translate into a $7 billion to $10 billion annual revenue stream over time," Ives concluded.

Apple stock recently traded 0.60% higher to $264.16 in New York. 

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

 

Quick facts: Apple Inc.

Price: 268.48 USD

Market: NASDAQ
Market Cap: $1.19 trillion
Follow

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Versus Systems sign deal to use technology in HP computers

Versus Systems (CSE:VS) CEO Matthew Pierce joined Steve Darling from Proactive Vancouver at the LD Micro Conference at the Luxe Hotel in Los Angeles. Versus uses an in-app advertising tool that rewards consumers with brands they want while engaging with the games & apps they love.

26 minutes ago

2 min read