Apple’s share price added more to recent gains by closing the December 17th session at a new record high of $280.41.
Apple’s relentless upward trajectory is not about to stop anytime soon, either, according to Merrill Lynch’s Wamsi Mohan. The 4-star analyst notes a list of reasons as to why he remains bullish on the world’s biggest company by market cap. Amongst them, the 4-star analyst thinks that valuation remains inexpensive, and that the brand has a loyal user base with a “continued strong demand for iPhones.” Mohan adds that an “attractively priced wearables portfolio… demographic changes in Apple’s favor and strong FCF and capital returns,” all indicate room for expansion.
The upcoming integration of 5G could drive strong growth according to Mohan. He expects Apple to “launch at least one model of the iPhone in the fall of 2020 with 5G capability” and thinks 20 million 5G iPhones will be shipped in C20 (calendar 2020), an increase from the previous forecast of 10 million… The analyst also thinks the 5G launch will be a catalyst for more consistent sales over the next 3 years, estimating sales will reach over 200 million each year between C20-C22.
MacDailyNews Note: Mohan reiterated Merrill Lynch’s Buy rating on shares of Apple and upped the price target from $270 to $290.