Investment bank Piper Sandler has upped its Apple target price to $130 from $113 on the strength of new Apple products and services that address aspects of the “new normal” during the COVID-19 pandemic.
Analyst Harsh Kumar wrote that the bank was “extremely impressed” with Apple’s event lineup and sees each product or service “addressing an individual’s ‘new normal’ following the coronavirus pandemic.”
The new Apple Watch Series 6 at a time when there is an increasing focus on health during the global health crisis, Kumar notes. He notes that the new models cements the Apple Watch as “one of the primary vital health sensors on the market today.”
The analyst adds that Apple’s 8th-generation iPad and iPad Air, both with significant updates to performance, creates an “enticing lineup” alongside the iPad Pro refresh that debuted earlier in the spring. Apple’s lower-cost Apple Watch SE is also likely to be a major driver of adoption…
Apple’s new services offerings, including Apple Fitness+ and the Apple One bundle, is also likely to bolster the segment. The Fitness+ service, Kumar writes, integrates with the Apple Watch and can be performed with limited equipment. During the global health crisis and a rise in at-home workout, Fitness+ bodes well as a workout solution and an “easy and cheap alternative for someone” looking to start a fitness routine.
MacDailyNews Take: Kumar is correct to raise his Apple target price as the company remains undervalued.