The week is not over yet, but Apple will likely end it ahead of a modestly declining S&P 500. Helping to support shares of the Cupertino company were a few upbeat research notes from Wall Street.
Wedbush’s Dan Ives has been consistently one of the most bullish analysts on Apple.
This week, he increased his bull-case price target to $200 from $175 previously. At these levels, Apple would be valued 63% above its current market price.
The optimism comes from what the analyst has called “major holiday tailwinds”. According to Dan:
Neutral, but with a twist
Two analysts that assign a “neutral” rating to Apple have also chimed in. Interestingly, both have different stories to tell on a similar subject.
UBS analyst Tim Arcuri seems a bit concerned about iPhone 12 demand in the holiday season and the potential impact to margins. He sees increased availability of the highest end iPhone as a negative:
But Matthew Cabral, from Credit Suisse, has a different read on the market. He says that iPhone 12 Pro Max wait times have in fact increased by three weeks in important global markets, including the US, UK and Germany.
Should the analyst be right, the impact to revenues and margins could be exactly the opposite of what his UBS peer expects to see: higher ASP and revenues and, possibly, better margins.
The Apple Maven’s opinion
Following Wall Street’s week-by-week coverage of iPhone sales in the holiday season can be a little distracting. This is particularly true when the data seems to point in different directions, depending on who you ask and when the question is asked.
From what I have seen so far, however, there has been little indication that Apple’s new smartphone could be a flop in the fourth calendar quarter, which is good news.
Also, I would remind readers not to place too much emphasis on iPhone sales, even though they continue to be crucial for Apple’s financial performance. Keep in mind that the ecosystem continues to evolve, and new products like the ARM-based Mac and the AirPods Max could be sources of unexpected revenue upside.
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