Apple remains the top stock pick for JP Morgan on expectations that the company will exceed muted investor expectations in iPhone and services growth.
JP Morgan analyst Samik Chatterjee outlined the banks ranking of stocks across its coverage universe. The rankings are based on themes that investors are focused on, as well as drivers specific to certain companies.
For JP Morgan, Apple remains in first place. Chatterjee says that Apple’s iPhone 13 sales volumes are likely to exceed low investor expectations for the cycle. Additionally, he expects services growth to remain robust — with growth in the 20% to 25% range.
Chatterjee maintains his 12-month Apple price target of $180, which is based on a 30x price-to-earnings multiple on JP Morgan’s 2022 earnings estimate of $6.12.
MacDailyNews Take: From Samik’s lips to Mr. Market’s ears.