Cantor Fitzgerald Bullish on Apple's Huge China Opportunity

Apple Inc.’s AAPL iPhone 6 and 6 Plus will be “coveted gifts” during Chinese New Year, which started today, according to Cantor Fitzgerald. The analysts reiterated their $160 price target and Buy rating on the stock.

In their bullish note, the analysts stated that Apple is “better positioned than ever in China” to benefit from more 3G/4G subscriptions. In January, the three China-based mobile carriers reported 3G/4G subscriptions grew by 42 percent year over year. When projected forward five years, Cantor believes this increasing base represents an opportunity of $123 to $164 billion for Apple, the note said.

While the analysts were overwhelmingly bullish on Apple, they did highlight eight potential risks to their outlook. Notably, those risks included the buoyancy of consumers, ability to keep key talent, competition and pricing pressures, and the ability to generate new products and market opportunities.

The $160 price target is based on 14x the 2016 EPS estimate plus cash.