- Shares of Apple Inc (NASDAQ: AAPL) have received a 12-month price target of $160 and a bull case of $200 by Wedbush analyst Dan Ives. These are the details.
Shares of Apple Inc (NASDAQ: AAPL) have received a 12-month price target of $160 and a bull case of $200 by Wedbush analyst Dan Ives. Ives said that the sales of the Apple iPhone 12 have exceeded the brokerage’s “bull case scenario” for fiscal 2021 based on supply chain checks across Asia. And this should boost shares as the December results will be coming soon.
“We believe Apple saw a robust Christmas/holiday season not just on iPhones, but also had a strong AirPods performance that will be another product tailwind heading into 2021 for Cook & Co,” Ives wrote in a research note.
The checks in Asia suggest that the supply chain is expecting low to mid 90 million iPhone unit builds for the quarter. This is well ahead of the 80-85 million range expected for mid-December, 75 million expected in late October, and 65-70 million expected about 3 months ago. Ives noted that this is roughly a 35% increase from the original and Street forecast.
Ives also noted that for the March quarter, he believes that builds for total iPhones increased another 5% from the previous week and now it is in the 60-70 million range. And for the June quarter, Ives said the believes initial builds are in the low 40 million range with potentially an upward bias.
“We have not seen a launch uptrend such as this in a number of years for Apple and the only iPhone trajectory similar would be the iPhone 6 in 2014 based on our analysis,” explained Ives.
Even though the Wall Street consensus is for 217 million iPhone unit sales for fiscal 2021, Wedbush is forecasting 240 million units. And this would “easily eclipse the previous Apple record of 231 million units sold in FY15.”
Disclosure: I have a small AAPL position in my stock portfolio.