Apple Stock (AAPL): $150 Price Target By Wedbush Maintained

By Amit Chowdhry ● October 14, 2020
  • Wedbush is maintaining a $150 price target on Apple Inc. (NASDAQ: AAPL) following the iPhone 12 event. These are the details.

Following the announcement of the iPhone 12 series of devices and the HomePod Mini, Wedbush analyst Dan Ives has maintained a $150 price target for Apple Inc. (NASDAQ: AAPL). Ives also told clients that the iPhone 12 launch is “Apple’s most important product cycle since the iPhone 6 in 2014.” This should lead to a “supercycle” for Apple over the next year.

Along with the upgrade in the chipsets, display technology, and camera specifications, Apple added 5G capabilities to the devices and rolled out new high-powered wireless charging with a new MagSafe charger that attaches to the new iPhones. Ives also pointed out that the mmWave technology for the U.S. versions of the iPhone 12 could be a “game-changer” as more infrastructure, technology, and apps are built around 5G.

There are about 950 million iPhones worldwide that are eligible for an upgrade. And given all the options at affordable prices, Wedbush believes that this could be an “unprecedented upgrade cycle” for the company.

“iPhone 12 mini hits the magic $699 price point. That’s a big deal and slightly expands iPhone’s addressable market,” wrote Loup Ventures managing partner Gene Munster in a tweet.

“With 5G now in the cards and roughly 40% of its ‘golden jewel’ iPhone installed base not upgrading their phones in the last 3.5 years, Cook & Co. have the stage set for a supercycle 5G product release,“ added Ives in the report.

Wedbush is not the only financial firm that set a $150 price target on Apple recently. JP Morgan and Argus Research also have $150 price targets on Apple. Morgan Stanley upgraded its price target from $130 to $136 and Credit Suisse increased its price target from $95 to $106.

Update: In an interview with Bloomberg today, Ives said he believes Apple could hit $175 within a year.

Disclosure: I have a small position in Apple in my portfolio.