Apple stock rose in early Thursday, after Wedbush analyst Dan Ives on Wednesday raised his price target, citing signs of increasing demand for iPhones in China.
Apple shares were up $1.24 (+0.81%) to $154.11 in early Thursday trading.
Ives said iPhone supply was steady in January and February, in contrast to the supply-constrained December quarter that resulted from issues related to China’s zero-COVID policies. And early indications in March suggest conditions continue to improve.
“Our Asia iPhone supply chain checks this week have been incrementally more positive, with a modest uptick in demand coming out of China for Apple with a clear demand rebound happening in this key region post December, despite the uncertain macro backdrop,” Ives wrote in a note to clients.
Ives said Apple is gaining market share in China and demand in the U.S. and Europe is holding up well. He estimates that about a quarter of current iPhone users have not upgraded their iPhones in more than four years, and he believes the new iPhone users added to Apple’s ecosystem over the past year will lead to a reacceleration of the company’s services business in the coming quarters.
MacDailyNews Take: Ives reiterated the “Outperform” rating he’s had on Apple for at least the past three years. He raised his stock-price target to $190 from $180, with the new target implying nearly 25% upside from Wednesday’s close.
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