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As Apple stock rises to correct its market plunge, an analyst has confirmed that the company’s upcoming 5G iPhone 12 will ensure a bull run. AAPL was up yesterday but started falling in the premarket.
Long after it’s over, the world will remember the coronavirus epidemic as one of the most worthy adversities the stock market faced in 2020. Several stocks are having a terrible time maintaining proper health as the virus continues to rage on. In addition to this, the immediate outlook isn’t very encouraging because the virus still seems quite far from containment. However, regardless of the plunges, people are still bullish on stocks like Apple Inc (NASDAQ: AAPL), which have plunged considerably. According to popular analyst Dan Ives, Apple stock will surge, thanks to 5G.
Apple (AAPL) Stock to Benefit from Supercycle
Apple (AAPL) stock has had a tough time rising and dropping because of the virus. Recently, the company announced that the coronavirus is a huge problem strong enough to affect its projected quarterly revenue. Just on that news alone, AAPL plunged.
Since then, however, it has swung upwards and downwards a few times. But regardless of the severe instability, Ives is convinced that Apple stock is headed for a bull run.
Back in December, the Wedbush analyst increased his AAPL price target from $325 to $350. At the time, Ives cited an “iPhone supercycle” largely focused on Apple’s 5G offerings. Now, in a recent note, Ives has reiterated this supercycle. According to him, the recent issues AAPL has been facing might not last very long. He believes that 5G will significantly boost the company.
“While the last few weeks has been an exogenous ‘shock event’ to Apple’s ecosystem on both the supply and demand side due to its China exposure, we believe this will be short-lived as the longer-term 5G super cycle thesis and services re-rating remain the crux of our bull thesis on Apple for the next 12 to 18 months.”
Apple (AAPL) Stock Will Pump
In the last week of February, Apple’s returns for 2020 dropped around 9%. At the moment, Apple stock’s year-to-date gains have plunged further, sitting just a bit over 3%. It has also lost almost 7% in the last one month.
Apple (AAPL) stock, however, seems quite resilient. In the last 5 days, it has regained some of its weight, almost scaling 11% percent. On Wednesday, it closed at $302.74 after climbing 4.64%. Even though that seems like a sign of good health, AAPL has lost over 2% premarket, currently hovering just a little above $296. Ives, however, believes that the company is in for a treat in 2020.
The analyst’s current price target is an optimistic $400. According to him, Apple’s customers this year will hit the company with a “perfect storm of demand.” He admits that even though there will be “some speed bumps” because of the coronavirus, there is already “pent up iPhone upgrade demand activity.”
Apple is bullish about its iPhone 12 chances. Last year, the company predicted that the new phone will sell over 100 million pieces this year. The iPhone 11 was a big hit for Apple as its stock reacted positively. Apple just might be in for a field day if it can replicate last year’s success.
Also, a Forbes report mentions that among other things, popular YouTuber Filip Koroy (EverythingApplePro) says that the new iPhone 12 will have a ring flash on its camera. Apple initially planned to use it on the iPhone 11 but dismissed the idea.