Apple (AAPL) - Get Apple Inc. (AAPL) Report shares were rising on Friday morning after Jefferies raised its price target on the stock on optimism about the tech giant’s 5G opportunity later this year.
Jefferies analyst Kyle McNealy raised his price target from $370 to $405 and wrote that he expects there to be four iPhone 12 models, with the two higher-end Pro models featuring 5G millimeter wave technology.
“Specifically, we feel better about Apple’s ability to hold retail pricing for the fall 5G launch relatively consistent with last year while maintaining solid gross margin performance,” McNealy wrote.
Several other analysts increased their price targets on Apple this week as well. On Wednesday, RBC increased its price target on Apple from $345 to $390, citing the company's huge and ongoing share repurchase program, in addition to potential from the 5G upgrade cycle. And on Tuesday, Citi raised its price target to $400, with analyst Jim Suva saying he expected the latest iPhone to still launch in September, with shipments starting a bit later than usual.
Apple shares were rising 1.1% to 355.62 on Friday morning and are up about 21% year to date.
Apple's World Wide Developers Conference (WWDC), which is usually held in person but this year is being held virtually because of the coronavirus, kicks off on Monday. The company is expected to introduce a new MacOS, and could also discuss a switch to its own Arm-based chips in Mac computers, a new services bundle, updates to iOS and WatchOS,and hints about the company’s R&D initiatives.