Wedbush analyst Daniel Ives has adjusted his Apple price target to $150, following Apple’s 4-for-1 stock split. Apple announced its stock split during its July 30 earnings call in a move intended to “make the stock more accessible to a broader base of investors.”
The analyst added that the split on Monday “speaks to Cook & Co. in a major position of strength with clear tailwinds” heading into the company’s 2020 iPhone season.
Ives expects the “iPhone 12” lineup to spark a super cycle when it debuts in early October, citing the fact that 350 million of 950 million iPhones are in an upgrade opportunity window. Ives calls that a “once in a decade” opportunity for Apple, and adds that the company is Wedbush’s favorite 5G play.
The new $150 price target is based on a sum-of-the-parts valuation on Wedbush’s 2021 Apple estimates. It includes a 15x multiple on Services at $900 billion and a 7.3x multiple on Apple’s hardware ecosystem at $1.7 trillion.
MacDailyNews Take: Yes, Apple’s 5G iPhone will mark the beginning of a multi-year 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