© Reuters.
By Christiana Sciaudone
Investing.com – Apple (NASDAQ 🙂 achieved a new high-street price target after Wedbush said it predicts a strong holiday season for iPhones and AirPods.
Wedbush reiterated an equivalent buyout rating with a target price of $ 160 per share and a bullish scenario of $ 200, according to StreetInsider.
Analyst Daniel Ives said that his optimistic scenario for iPhone sales has already been overcome.
“In mid-December, we had this in the range of 80 million with an extended target in the range of 80 million and at the end of October we were forecasting 75 million units as the line in the sand and about three months ago that number was in the Range 65 to 70 million, “he wrote in a note, according to StreetInsider. “This is an increase of approximately 35% over our original and Street forecasts.”
Sales of a new edition of the iPhone like this have not been seen since 2014 with the iPhone 6, Ives said.
Ives has high hopes for the phone. While Street’s consensus for iPhone sales in 2021 is 217 million devices, Ives sees the very optimistic possibility of exceeding 240 million to 250 million units. This compares to Apple’s 2015 record of 231 million devices.
China, in particular, is expected to remain in strong demand, with around 20% of updates in the region.
“While service growth remains the key to Apple’s reclassification history for the past six months, the hearts and lungs of Apple’s growth story are built around updates to the iPhone’s installed base,” wrote Ives.
Still, Alphabet (NASDAQ 🙂 may be a better bet. Baird raised Alphabet’s target price from $ 1,725 from $ 1,725 to $ 2,000 and maintained an equivalent purchase rating, StreetInsider reported.
“A comparison of Apple’s assessment with Alphabet’s suggests that the latter may be undervalued in comparison to a worthy comparable ‘mature technology’,” wrote Colin Sebastian in a note, StreetInsider reported. “Specifically, we use implicit valuation multiples for Apple’s hardware and services businesses, with significant discounts to account for Apple’s walled garden, and apply them to the Alphabet segments. Separately, based on positive fourth quarter checks, facilitation, benefits of research in the first place environment and expected recovery in travel and post-pandemic verticals, we are increasing our estimates. “
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