Apple analysts of late have grown more optimistic on the company’s prospects, pointing to the upcoming launch of a 5G version of the iPhone, as well as continued growth in its services business.
BofA on Thursday raised its price target to a Street-high view of $390, from $340, and reiterated its buy rating. Analyst Wamsi Mohan expects product revenue “will grow 20% next year from iPhone and wearables,” and touted the company’s “continued penetration into [its] installed base, large net cash, and continued strong capital returns.”
Earlier, Wells Fargo Securities raised its own price target, writing that data for China mobile phone registrations pointed to a “solid post-COVID recovery.” The firm reiterated its overweight rating, expecting investors will continue to view Apple “as a favored high-quality large cap name,” especially given the anticipated 5G iPhone.
Also on Thursday, HSBC upgraded its view on Apple to hold [and raised its AAPL price target to $295 from $225], removing one of the rare sell-equivalent ratings on the stock. The firm expects to see a “successful” 5G iPhone launch in the third quarter of 2020, and also noted growth in Apple’s services business.
MacDailyNews Take: There’s some understandable profit taking today, after the recent run up to new all-time highs, but Apple’s future looks very bright indeed!