Market Overview

Pro: Apple Shares Have Room To Run To $490

Pro: Apple Shares Have Room To Run To $490

The upcoming 5G cycle recently prompted Citi analysts to raise their price target on Apple Inc. (NASDAQ: AAPL) to a Street-high $400, but Ascent Wealth Partners managing director Todd Gordon says this target isn't generous enough.

What Happened: Taking a look at Apple's stock chart dating back to 2013, the case for upside to $490 per share can be made, Gordon said on a CNBC "Trading Nation" segment. Like clockwork, Apple's stock rose at least 130% on three separate occasions before giving back one-third of the gains.

So far, Apple's stock is up just 66% in its fourth rally from 2020 lows. If history repeats itself, "we can easily" see Apple's stock carry its momentum over the coming years and gain another 40% from current levels, he said.

See Also: 7 Reasons Why BofA Is Raising Apple's Price Target As Stock Reaches New Highs

Why It's Important: The case for Apple's stock is difficult to make based on chart patterns alone, but Gordon came prepared to back his thesis and said the 5G launch could prove to be the "supercycle that everyone's looking for."

Other catalysts include continued growth in wearables, momentum in the Services unit with subscription, streaming, TV, gaming and the credit card.

What's Next: Consumers are showing signs of "pent-up demand" to buy products, including a new iPhone, according to Steve Chiavarone, portfolio manager at Federated Herme.

"They have stockpiled savings, and we expect the consumer to have a good second half," he said on CNBC.

Apple's stock trades around $355.20 at the time of publication.

Latest Ratings for AAPL

Sep 2020Raymond JamesMaintainsOutperform
Sep 2020CitigroupMaintainsBuy
Sep 2020JefferiesMaintainsBuy

View More Analyst Ratings for AAPL
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