With the South Korean automotive giant Hyundai Motor Company GDR (OTC: HYMTF) confirming that it is in negotiations with Apple Inc. (NASDAQ: AAPL) Regarding an electric vehicle manufacturing partnership, an analyst at Wedbush sees many more associations on the horizon.
The Apple analyst: Daniel Ives has an Outperform rating and a target price of $ 160 for Apple shares.
Apple’s Thesis: Apple is probably in the early stages of negotiations with Hyundai, Ives said. The tech giant may be looking at a handful of strategic partnerships and collaborations globally, with existing automakers ahead of EV.
Related link: Apple’s autonomous car is at least 5 years away: report
Hyundai’s news is in line with Ives’ earlier expectation that Apple will eventually announce a strategic EV partnership in 2021, laying the groundwork for entering the growing EV space.
A larger potential strategic partnership with an EV player established as Tesla Inc. (NASDAQ: TSLA) or Volkswagen AG (OTC: VWAGY) would be a golden partnership for the next decade taking advantage of this EV opportunity, said the analyst.
The chances of strategic partnerships with companies like Tesla, Volkswagen, Hyundai or other car manufacturers in China, such as XPeng Inc. – ADR (NYSE: XPEV) and Nio Inc. – ADR (NYSE: NIO) are in the 70% + range in the coming years, estimates Ives.
Most recent reviews of AAPL
| Meeting | Company | Action | In | For |
|---|---|---|---|---|
| January 2021 | Canaccord Genuity | Keeps | Purchase | |
| January 2021 | Swiss credit | Keeps | Neutral | |
| December 2020 | Morgan Stanley | Keeps | Overweight |
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