Yesterday Canaccord Genuity raised their 12-month price target on Apple (NASDAQ: AAPL) from U$145 to U$150 while reiterating their buy rating on the stock. T. Michael Walkley, Canaccord’s IT analyst headlines, “Strong demand for iPhone 12 products; increasing iPhone estimates and price target to $150.”
Apple currently has 40 analysts covering the company with a weighted 12-month price target of U$129.05. This is up from the average at the start of the month, which was U$125.92. 11 analysts have strong buys, twenty analysts have buy ratings, seven analysts have hold ratings, one analyst has a sell, and another has a strong sell rating.
The primary reason for the price target increase is due to Canaccord increasing overall estimates as well as their iPhone revenue estimate. Walkley says that even after the lagging shipments of both the iPhone 12, 12 Pro, 12 mini, and 12 Pro Max, that there is strong demand that “combined with ramping supply for iPhone 12 products should result in strong Q1/F’21 results with a likely stronger than normal seasonal March quarter on sustained iPhone 12 demand.”
Canaccord now is increasing their iPhone unit estimates for 1Q2021 from 69 million to 75.5 million, and their full-year 2021 and 2022 estimates from 223 and 234 million to 233 and 244 million, respectively. This, in turn changes their iPhone revenue estimate to $59.7 billion from $56.9 billion, and 2021 and 2022 iPhone revenue estimates from $173.0 and $170.0 billion to $173.9 and $175.7 billion, respectively.
Walkley anticipates Apple will see strong growth in all product lines. He writes, “we still anticipate all other products other than iPhones continuing to grow double-digits. We also anticipate services maintaining mid-to high teens double-digit growth given the success of Apple’s strong service offering and increasing number of subscriptions per user.” Additionally, he expects that 5G will drive a healthy upgrade cycle for new products alongside strong demand for Apple’s other products, which will give Apple increased gross margins.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.