5G, iPhone 12 Are Becoming Key To Apple's Future: Wedbush

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By Sanju Swamy

A Wedbush analyst raised their Apple Inc. AAPL price target Monday as the launch of 5G and iPhone 12 become key factors in the company's growth.

The Apple Analyst: Daniel Ives reiterated an Outperform rating on Apple and raised the price target from $425 to $450.

The Apple Thesis: Wedbush expects Apple will reach a $2-trillion valuation in 2021 because of “5G tailwinds and services momentum potential,” Ives said in a note.

The iPhone 12 is the “linchpin” of Ives' long-term bullish outlook for Apple over the next 12 to 18 months, the analyst said.

See Also: Morgan Stanley Raises Apple Price Target On iPhone Trade-In Opportunity

He named the following as factors in Wedbush's Apple thesis:

  • Four iPhone 12 models are set to launch with a mix of 4G and 5G; Wedbush expects some versions to be priced under $1,000 despite the added 5G component.
  • Approximately 350 million of the 950 million iPhones worldwide are in the iPhone 12 upgrade window. 
  • Apple expects to sell 90 million AirPod units because chargers and EarPods will not be included in the iPhone 12 box and packaging. 

China is a “key ingredient in Apple’s recipe for success,” with an estimated 20% of iPhone upgrades coming from that market alone, Ives said. 

AAPL Price Action: Apple shares were trading 1% higher at $387.48 at the time of publication. 

Photo by Daniel Lu via Wikimedia.

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