At the time of writing Apple’s stock, AAPL is trading at $148.4 and if the upward trend continues, the company is likely to achieve a $2.5 trillion market cap in a few days, if not in a few hours. But estimating AAPL’s worth in the coming months, analysts have raised their price target predicting high sales of the iPhone 12 series and the new iPhone 13 series.
During the COVID-19 pandemic, Apple has consistently delivered new innovative products which helped people make a comfortable transition from the physical to the virtual world for social, educational, professional, entertainment, and other needs. Since March 2020, the company has launched new iPads, M1 Macs, iPhone 12 series, Apple Watch Series 6, HomePod mini, Apple Fitness+, Podcasts subscriptions and channels, App Tracking Transparency privacy feature, software updates across devices, and much more.
These additions have resulted in record revenue in sales across products and services in consecutive quarters: Q2 2020, Q3 2020, Q4, 2020, Q1 2021, and Q2 2021. Therefore, predicting the strong sales of the current and upcoming iPhone series, JP Morgan’s analysts have raised AAPL’s target price.
Limited disruptions to the supply chain and 5G support and other factors made analysts raise AAPL’s target price
JP Morgan’s analysts have raised their target price of AAPL by $5 because of the company’s iPhone sales. In the investor notes viewed by Ped30, analyst Samik Chatterjee estimates that Apple will have an upward earning cycle in the next 6 to 12 months because of limited disruption in iPhones’ supply chain and continuation of high Mac sales momentum. In conclusion, Chatterjee “Maintains Overweight rating and raises target to $175 from $170.”
The combination of upside from iPhone 13, stemming from a better upgrade rate to 5G devices and a larger installed base, as well as upside from the launch of iPhone SE3 in calendar 2022 could set Apple up for an earnings upgrade cycle over the next 6-12 months.
Furthermore, analyst Katy Huberty details that in June, AAPL price went up by 20% because of three factors: Apple outperformed the S&P 500 by 8 points, on average, 17% growth of App Store in June and expectation that iPhone builds will grow at a mid-to-high teens percentage Y/Y in C2H21, “which along with recent share gains further supports our view that iPhone revenue can grow in FY22, and refutes the concerns of iPhone s-cycle declines.” In conclusion, Huberty “maintains Overweight rating and raises target to $166 from $162.”
Earlier Japanese investors also revised their iPhone 13 shipment figures to 85 million from 82 million and overall iPhone shipments to 228 million from 225 million based on current trends. Although we are moving towards a new iPhone launch in September, iPhone 12 sales are still strong which will likely have a positive impact on Apple’s stock price.