As of 1:40 p.m., Apple's shares were up 2%. It is most likely due to an upbeat note from investment bank Wedbush this morning.
The image is from the same source.
In its note today, Wedbush said it was optimistic on the stock because of the strong demand for the iPhone 13 in the U.S. and China.
The drumroll to iPhone 14 this Fall will be the result of the success of the iPhone 13 and theelongated product cycle that Apple is in. 30 million new 5G-capable iPhone SEs will be sold by the company this year.
J.P. Morgan seems to agree with what it is worth. In a separate note, it points to datapoints that support its positive outlook for iPhone 13 demand into the future, and to back up its own overweight rating and $210 price target on Apple.
The start of the good news could be in 2022.
According to Wedbush, Apple's "monster" growth cycle will continue over the next 12 to 18 months. Thus, this rally could potentially extend all the way into late 2023, a likelihood that Wedbush does not believe has yet been baked into shares at current levels.
I am inclined to agree. Apple stock costs less than the average company in the S&P 500 at 25.5 times earnings. Apple is not an average company. Its stock price should go up.
The Ascent is a company that is advertising with JP Morgan Chase. Rich Smith doesn't have a position in any of the stocks. Apple is owned and recommended by The Motley Fool. The long March 2023 $120 calls on Apple are recommended by The Motley Fool. There is a disclosure policy for The Motley Fool.
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