Teens’ love affair with all things Apple (AAPL) - Get Report, specifically the company’s ubiquitous iPhone and its less pervasive smaller cousin, the Apple Watch, has prompted analysts at Piper Sandler to lift their one-year price target on the stock.
Apple’s price target was raised to $300 from $260 by Piper Sandler analyst Harsh Kumar, who cited a biannual survey his firm conducted of teenage consumers showing that the iPhone was the most popular smartphone among those polled, while the Apple Watch was the top smart watch.
Kumar raised his price target on Apple to $300 from $260 and kept his overweight rating on the shares after the poll showed that 85% of the 5,200 teens surveyed by the firm have an iPhone, “the highest percentage we have seen in our survey.”
The results are “a sign that Apple’s place as a dominant device brand among teens remains well intact.”
Interest in AirPods demonstrates “the already strong attach rate and solid purchase intent” in products outside AAPL’s main categories,” Kumar said in a research note.
The survey also showed Netflix (NFLX) - Get Report as the most popular video platform. On average, “… teens spend 33% of their time watching Netflix, down from 35% in the fall,” but still ahead of Alphabet’s (GOOGL) - Get Report YouTube, which fell from 37% in the previous survey to 31%.
Meantime, J.P. Morgan analyst Samik Chatterjee had a different take on Apple on Wednesday, lowering his price target on the stock to $335 from $350 after taking a "much harsher look" at projected sales based on what he sees as "limited" customer engagement through the coronavirus-led economic downturn. .
Shares of Apple were up 1.52% at $263.38 in trading on Wednesday. Shares of Netflix were up 1.29% at $377.10, while shares of Alphabet were up 1.35% at $1,.198.57.