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Apple has come under pressure in recent months as the pandemic forced store closures and ushered in a period of weaker consumer confidence, but some analysts seem upbeat about the company’s trajectory. AAPL stock price is rising.
American multinational technology company Apple Inc (NASDAQ: AAPL) stock closed at a record high last week. That could mean a sign of optimism that is happening in the smartphone sector, especially after the coronavirus crisis. Apple shares rose on Friday 2.85% and closed the day at $331.50. This marked the first record closing high since Feb. 12, when shares finished at $327.20, and the 11th overall record close this year, according to FactSet data.
The company was pretty much bothered during the last few months as the pandemic forced the businesses to close and unfortunately went on for consumers to delay/ However, some experts seem upbeat about the company’s trajectory now that stores are reopening and consumer spending continues to rebound.
Wedbush analyst Daniel Ives went on to increase his price target for AAPL stock to $375 from $350 and maintain an outperform rating:
“With roughly 350 million …iPhones in the pent up ‘window of an upgrade opportunity,’ we believe [Apple] has a unique opportunity to capture this delayed supercycle opportunity with a major 5G cycle on the horizon which will include a host of new smartphone versions/models for iPhone 12.”
What Will Boost Apple (AAPL) Stock?
Ives said the company’s services business has outperformed regardless of the lockdowns and is on pace to top $60 billion in revenue for the September 2021 fiscal year. “AirPod sales have remained relatively robust,” and should approach 85 million units this year, versus 65 million last year, he said.
Ives noted clients that around 20% of iPhone upgrades could come from the China territory in the year ahead. He also noted that all the queries between the U.S. and China are just a “more headline risk” than something that could “truly” impact supply and demand for the forthcoming iPhones.
On the other hand, Apple’s Friday rally came even as Broadcom went on to confirm a decrease in the launch schedule for the new iPhone, according to experts. Broadcom Chief Executive Hock Tan stressed on his company’s earnings call that the company would “normally expect to see a double-digit sequential uplift in revenue from the ramp of the next-generation phone at our large North American mobile phone customer” in the July quarter, but now the company expects that revenue uptick will occur a quarter later.
Barclays analyst Tim Long said in a note to clients:
“This is not entirely surprising to us, as our model assumed the 5G iPhone would be delayed by roughly a month due to supply chain disruption and certain yield issues on 5G components.”
Investors that were monitoring the situation decided that they have to hear more from Apple shortly as the company begins its WWDC developer event on June 22. The company has also decided to hold the event virtually this year due to the coronavirus outbreak.