Market Overview

Analyst Raises Apple's Price Target To $400 Ahead Of Q1 Earnings

Analyst Raises Apple's Price Target To $400 Ahead Of Q1 Earnings

Apple Inc. (NASDAQ: AAPL) should "handily" beat Wall Street estimates in next week's earnings report after the iPhone maker took advantage of a strong holiday season, according to Wedbush.

The Analyst

Daniel Ives maintains an Outperform rating on Apple's stock with a price target lifted from $350 to $400.

The Thesis

Wedbush's incremental bullish stance on Apple is based on "overwhelming positive data points" coming out of the company's supply chain, Ives wrote in a note. These include "robust" iPhone 11 shipments and "jaw-dropping" AirPods momentum. As such, Apple remains a "must-own stock" through an upcoming transformational 5G supercycle over the next 12 to 18 months.

In fact, out of 925 million iPhones in existence, the upcoming 5G cycle could see 350 million phones upgraded when the next models are launched. Investors wondering if they missed out on the rally face an easy to understand the answer: "a resounding no."

Apple could hit the $2 trillion valuation milestone by the end of 2021 from a combination of 5G demand and a Services business that continues to grow and command a higher valuation, the analyst said. Apple's market cap sit around $1.4 trillion today.

The stock has re-rated higher over the past year, but Ives said in a CNBC interview Apple's stock is only halfway through a re-rating cycle. Part of that is due to the Services business, which should be valued by itself near $650 billion based on $60 billion in annual sales.

"In our view, the monetization of the installed base is just starting to happen here," Ives said. "The next few years I think we start to get to the sweet spot."

Price Action

Shares of Apple hit a new all-time high at $323.33 on Friday. The company reports earnings after Tuesday's closing bell.

Related Links:

BofA Raises Apple's Price Target, Expects 'Another Leg Up' Following Q1 Earnings

4 Things To Watch For On Apple's Q1 Earnings Call

Latest Ratings for AAPL

Jan 2020UpgradesHoldBuy
Jan 2020ReiteratesBuy
Jan 2020MaintainsBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: 5G AirPodsAnalyst Color Long Ideas Price Target Analyst Ratings Media Trading Ideas Best of Benzinga


Related Articles (AAPL)

View Comments and Join the Discussion!

Latest Ratings

PVHWells FargoMaintains110.0
MHKWells FargoMaintains125.0
ENBWells FargoMaintains63.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at