Even after becoming the first U.S. company to reach a $2 trillion market value, Wedbush analyst Daniel Ives believes that Apple shares can gain even more in the next 12 months.
Ives wrote in a Friday note, “We still believe the stock has a lot of gasoline left in the tank with an iPhone 12 ‘supercycle’ on the near term horizon.”
He has an “outperform” rating on the stock, a price target of $515 and a bull case of $600 – roughly 27% higher than where Apple closed Thursday.
According to Ives, even against a soft backdrop due to COVID-19, “Apple has a ‘once in a decade’ opportunity over the next 12 to 18 months as we estimate roughly 350 million of Cupertino’s 950 million iPhones worldwide are in the window of an upgrade opportunity.”
In addition, Ives is seeing “considerable strength” from China, which he estimates will account for roughly 20% of iPhone upgrades in the coming year.
“We still believe many on the Street are underestimating the massive pent-up demand around this supercycle for Apple, which remains the opportunity for the bulls heading into 2021 as this monetization engine heads into its next gear,” said Ives.
MacDailyNews Take: Vroom, vroom, for Apple shares ahead of the multi-year iPhone 5G super cycle!
Just as iPhone this year is all about the camera, next year will be all about 5G. Get ready for the Mother of All iPhone Super Cycles! — MacDailyNews, December 23, 2019