Wedbush raises Apple price target to $350, says Apple is past the 'eye of the storm'

Posted:
in General Discussion
Investment bank Wedbush is raising its Apple price target to $350 on what it describes as a robust performance by the company's services, plus prospects of recovering demand and the highly anticipated "iPhone 12."

Wedbush is forecasting that the worst of the COVID-19 economic impact is in the past for Apple.
Wedbush is forecasting that the worst of the COVID-19 economic impact is in the past for Apple.


In a note to investors seen by AppleInsider, lead Wedbush analyst Daniel Ives maintained that there are "darker days" ahead for the economy, but adds that clients should use near-term uncertainty as an "opportunity to buy the stock for the other side of the dark valley."

The analyst notes that investors have come away from Apple's last earnings call focused on the company's "Teflon-like" services sector, despite early concerns of nightmare results and the lack of June quarter guidance. Ives says that the company's services business has been "robust" despite COVID-19, and estimates that it'll hit more than $60 billion of revenue in 2021.

Wedbush also believes that the reopening of Apple's retail footprint and a normalizing supply chain are two signs that the company is starting to lay the groundwork for post-pandemic recovery.

The expected "iPhone 12" lineup later in 2020 should start that recovery, Ives added. Wedbush estimates that roughly 350 million out of Apple's 925 million iPhone user base are in an "upgrade window," which could bode well for the next cycle.

Ives doesn't expect this year's 5G iPhones to debut in the fall, however. Instead, the analyst said Wedbush's current base case assumes that the "iPhone 12" lineup will launch in the November or early December timeframe ahead of the busy holiday season.

The analyst is maintaining Apple's outperform rating, but has bumped its 12-month price target for Apple from $335 to $350, stating that the "eye of the storm is in the rear view mirror" for Apple's supply and demand.

That $350 price target is based on a 9.2x multiple for Services and a 4.3x multiple for Apple's mature hardware and iPhone sector. Wedbush's price-to-earnings multiple is 24.9x for the 2020 fiscal year.

Ives last changed his Apple price target to $335 in March following a broader economic plunge due to coronavirus. That lowered prediction followed two months of investor notes forecasting a $400 price target.

Shares of Apple are currently trading at $317.46 on the NASDAQ, up 0.78% in trading.
«1

Comments

  • Reply 1 of 26
    SpamSandwichSpamSandwich Posts: 33,408member
    I wouldn’t mind $350. Not at all.
  • Reply 2 of 26
    red oakred oak Posts: 888member
    I think it is much higher than $350 12 months from now.  2021 is lining up to be a breakout year 
    edited May 2020
  • Reply 3 of 26
    lkrupplkrupp Posts: 9,472member
    The stock market is acting like the economic recovery will be quick and painless. We aren’t even at the bottom of this yet. In Illinois the governor is signaling he will extend the lockdown into at least the middle of June. Hospitals are laying off staff because no one is going to the ER, getting routine procedures, or elective surgeries. The news media’s constant drumbeat of fear and doom has frightened people into paralysis. Who the hell is going to go into a restaurant even after the lockdowns are lifted? We have been kowtowed into societal germophobia.

    In my own case I’m due for a routine endoscopic exam. I called my gastroenterologist’s office to ask if they were doing procedures now. Yes, but I have to get tested for Covid-19  first and then  spend 72 hours in self-isolation before coming in. I told them I would call back.

    We are just beginning to see the utter destruction of the economy take hold, Huzzah, we’ll be safe from the virus but we’ll be living in poverty, dependent on the government for our meager existence. 
    red oak
  • Reply 4 of 26
    knowitallknowitall Posts: 1,648member
    Ok, brace for the rim of the storm then, most ships sink on that (corona second wave could be more deadly than the first, as was the case for the Spanish flu). 
    sconosciutofastasleep
  • Reply 5 of 26
    lkrupp said:
    We have been kowtowed into societal germophobia.


    OK, back up your talk. Show us cowards how a real man deals with this: volunteer to clean up the hospital rooms of expired C-19 patients.

    All I need to know about ignoramuses like yourself, is the fact that the so-called president is urging everyone to go back to work and "re-open the economy" while entry into the West Wing requires wearing a mask and everyone at the WH gets tested for C19 daily... now that the virus has spread to there too.
    edited May 2020 tmayknowitallfastasleepchemengin1
  • Reply 6 of 26
    SpamSandwichSpamSandwich Posts: 33,408member
    lkrupp said:
    The stock market is acting like the economic recovery will be quick and painless. We aren’t even at the bottom of this yet. In Illinois the governor is signaling he will extend the lockdown into at least the middle of June. Hospitals are laying off staff because no one is going to the ER, getting routine procedures, or elective surgeries. The news media’s constant drumbeat of fear and doom has frightened people into paralysis. Who the hell is going to go into a restaurant even after the lockdowns are lifted? We have been kowtowed into societal germophobia.

    In my own case I’m due for a routine endoscopic exam. I called my gastroenterologist’s office to ask if they were doing procedures now. Yes, but I have to get tested for Covid-19  first and then  spend 72 hours in self-isolation before coming in. I told them I would call back.

    We are just beginning to see the utter destruction of the economy take hold, Huzzah, we’ll be safe from the virus but we’ll be living in poverty, dependent on the government for our meager existence. 
    In California they refuse to test you unless you already exhibit pronounced symptoms or are part of the public the Leftists in charge need more votes from.
  • Reply 7 of 26
    BeatsBeats Posts: 2,532member
    Apple reports better numbers than analysts predicted. Pandemic will soon get better in the Northern Hemisphere.

    Analysts: "I predict Apple will do better in the next few months."
  • Reply 8 of 26
    fastasleepfastasleep Posts: 5,691member
    lkrupp said:
    The stock market is acting like the economic recovery will be quick and painless. We aren’t even at the bottom of this yet. In Illinois the governor is signaling he will extend the lockdown into at least the middle of June. Hospitals are laying off staff because no one is going to the ER, getting routine procedures, or elective surgeries. The news media’s constant drumbeat of fear and doom has frightened people into paralysis. Who the hell is going to go into a restaurant even after the lockdowns are lifted? We have been kowtowed into societal germophobia.

    In my own case I’m due for a routine endoscopic exam. I called my gastroenterologist’s office to ask if they were doing procedures now. Yes, but I have to get tested for Covid-19  first and then  spend 72 hours in self-isolation before coming in. I told them I would call back.

    We are just beginning to see the utter destruction of the economy take hold, Huzzah, we’ll be safe from the virus but we’ll be living in poverty, dependent on the government for our meager existence. 
    In California they refuse to test you unless you already exhibit pronounced symptoms or are part of the public the Leftists in charge need more votes from.
    Because they don't have enough tests available, and guess whose feet you can lay the blame for that at.
    sconosciuto
  • Reply 9 of 26
    fastasleepfastasleep Posts: 5,691member

    lkrupp said:
    The stock market is acting like the economic recovery will be quick and painless. We aren’t even at the bottom of this yet. In Illinois the governor is signaling he will extend the lockdown into at least the middle of June. Hospitals are laying off staff because no one is going to the ER, getting routine procedures, or elective surgeries. The news media’s constant drumbeat of fear and doom has frightened people into paralysis. Who the hell is going to go into a restaurant even after the lockdowns are lifted? We have been kowtowed into societal germophobia.

    In my own case I’m due for a routine endoscopic exam. I called my gastroenterologist’s office to ask if they were doing procedures now. Yes, but I have to get tested for Covid-19  first and then  spend 72 hours in self-isolation before coming in. I told them I would call back.

    We are just beginning to see the utter destruction of the economy take hold, Huzzah, we’ll be safe from the virus but we’ll be living in poverty, dependent on the government for our meager existence. 
    So you'd have been happier if we plowed ahead full steam and hit the high ends of the mortality projections? A few million dead would be fine, because the economy? Fuck right off.
    chemengin1sconosciuto
  • Reply 10 of 26
    apple ][apple ][ Posts: 9,233member
    So you'd have been happier if we plowed ahead full steam and hit the high ends of the mortality projections? A few million dead would be fine, because the economy? Fuck right off.
    The projections are garbage, about as accurate as AAPL stock price projections, or even worse.

    A huge amount of deaths are from nursing homes. Close them off, quarantine them  and isolate them completely, leave everything else open.

    That method would have been far more effective than sending infected patients straight back into nursing homes, so that they could infect everybody else there. Good job politicians and governors in certain states, lol. And those are the people who we should be listening to? No thanks.
    edited May 2020
  • Reply 11 of 26
    fastasleepfastasleep Posts: 5,691member
    apple ][ said:
    So you'd have been happier if we plowed ahead full steam and hit the high ends of the mortality projections? A few million dead would be fine, because the economy? Fuck right off.
    The projections are garbage, about as accurate as AAPL stock price projections, or even worse.

    A huge amount of deaths are from nursing homes. Close them off, quarantine them  and isolate them completely, leave everything else open.

    That method would have been far more effective than sending infected patients straight back into nursing homes, so that they could infect everybody else there. Good job politicians and governors in certain states, lol. And those are the people who we should be listening to? No thanks.
    Projections and models are just that. They also constantly change due to any number of variables. It doesn't take a mathematician to figure out how many people would likely die if this virus were to run rampant through the community, but you do need to understand basic math.

    About a quarter of the total deaths in the US are from nursing homes. Not sure why you'd point that out as if that were a meaningful metric, when a ton more people are being hospitalized or dying that have never set foot in nursing homes. We're still at the beginning of this thing, and it's about to get worse again now that people think they can go out and brunch and shit again as if nothing is happening. Have fun sticking your head in the sand — a lot of people are still yet to die from this.
    edited May 2020 chemengin1sconosciuto
  • Reply 12 of 26
    apple ][apple ][ Posts: 9,233member
     a lot of people are still yet to die from this.
    A lot of people die every single day, even before the virus. And a lot of people will die every single day, even after this whole virus thing simmers down.

    It's not the end of the world, even though the media is doing its best to make it seem like that, and I for one am certainly not going to go around acting like it is.

    You mentioned nursing homes accounting for a quarter of US deaths, but stats vary greatly from state to state and in quite a few states, they account for around half of all deaths.
  • Reply 13 of 26
    fastasleepfastasleep Posts: 5,691member
    apple ][ said:
     a lot of people are still yet to die from this.
    A lot of people die every single day, even before the virus. And a lot of people will die every single day, even after this whole virus thing simmers down.

    It's not the end of the world, even though the media is doing its best to make it seem like that, and I for one am certainly not going to go around acting like it is.
    So we should do nothing to mitigate those deaths? Nobody said it's the end of the world, but we are still in a situation where many, many more people are going to die because of this virus. Unlike you Branch Covidian death cultists, some people would prefer that lessened as much as possible.

    You mentioned nursing homes accounting for a quarter of US deaths, but stats vary greatly from state to state and in quite a few states, they account for around half of all deaths.
    I realize that. What's your point? 
    sconosciuto
  • Reply 14 of 26
    flydogflydog Posts: 1,005member
    SpamSandwich said:

    In California they refuse to test you unless you already exhibit pronounced symptoms or are part of the public the Leftists in charge need more votes from.
    40 million people, and capacity to do 25,000 tests a day.

    Since you're clearly an expert, how would you do things differently?
    fastasleepsconosciuto
  • Reply 15 of 26
    flydogflydog Posts: 1,005member

    apple ][ said:
     a lot of people are still yet to die from this.
    A lot of people die every single day, even before the virus. And a lot of people will die every single day, even after this whole virus thing simmers down.

    Sure, what's a few hundred thousand more dead bodies.  Would your opinion change if your mother was among them? 
    edited May 2020 fastasleepsconosciuto
  • Reply 16 of 26
    apple ][apple ][ Posts: 9,233member
    apple ][ said:
     a lot of people are still yet to die from this.
    A lot of people die every single day, even before the virus. And a lot of people will die every single day, even after this whole virus thing simmers down.

    It's not the end of the world, even though the media is doing its best to make it seem like that, and I for one am certainly not going to go around acting like it is.
    So we should do nothing to mitigate those deaths? Nobody said it's the end of the world, but we are still in a situation where many, many more people are going to die because of this virus. Unlike you Branch Covidian death cultists, some people would prefer that lessened as much as possible.

    You mentioned nursing homes accounting for a quarter of US deaths, but stats vary greatly from state to state and in quite a few states, they account for around half of all deaths.
    I realize that. What's your point? 
    I'm not a death cultist, I'm a realist and I realize that there's a virus going around and some people have died and more are going to die. That's what usually happens during a pandemic.

    I never said that nothing should be done to mitigate the spread of the virus and I am for example in favor of Apple stores checking temperatures of customers entering, so that any infected people will be refused entry.

    The country has also been taking many measures over the past many months, but the time has come to loosen up on those measures as there is a balance game between taking extreme measures and completely shutting down society and the economy.

    It's time for the economy to start to get back on track. A few more dead here and there is going to happen anyway.

    And my point about the nursing homes is that they should have been closed off from the very beginning, that's just plain common sense. Sending the infected back into those homes is basically murder for many people. It was known from the beginning that the elderly and the sick were those most at risk, so this was obvious the entire time, and yet the governors in certain states still chose to do what they did.
    edited May 2020
  • Reply 17 of 26
    apple ][apple ][ Posts: 9,233member
    flydog said:

    apple ][ said:
     a lot of people are still yet to die from this.
    A lot of people die every single day, even before the virus. And a lot of people will die every single day, even after this whole virus thing simmers down.

    Sure, what's a few hundred thousand more dead bodies.  Would your opinion change if your mother was among them? 
    Silly argument, doesn't change the fact that the economy and society needs to open up again.

    Yes, some mothers will die, maybe mine, maybe yours. It is what it is.
  • Reply 18 of 26
    fastasleepfastasleep Posts: 5,691member
    apple ][ said:

    I'm not a death cultist, I'm a realist

    A few more dead here and there is going to happen anyway.

    It is what it is.
    What exactly constitutes "a few more" in your mind? There are going to be millions dead worldwide before this is over. Even with a moderately nihilistic worldview, I find it beyond bizarre when people gloss over this like it's no big deal. 
  • Reply 19 of 26
    apple ][apple ][ Posts: 9,233member
    What exactly constitutes "a few more" in your mind? There are going to be millions dead worldwide before this is over. Even with a moderately nihilistic worldview, I find it beyond bizarre when people gloss over this like it's no big deal. 
    I guess it depends on how somebody views things. Millions is not that many in the big scope of things. There are plenty of billions on the planet, way more than ever before, due to irresponsible breeding by some humans. It would be worse if millions were killed by an act of war or by other humans for example, but this seems to be purely biological.



  • Reply 20 of 26
    tmaytmay Posts: 5,432member
    lkrupp said:
    The stock market is acting like the economic recovery will be quick and painless. We aren’t even at the bottom of this yet. In Illinois the governor is signaling he will extend the lockdown into at least the middle of June. Hospitals are laying off staff because no one is going to the ER, getting routine procedures, or elective surgeries. The news media’s constant drumbeat of fear and doom has frightened people into paralysis. Who the hell is going to go into a restaurant even after the lockdowns are lifted? We have been kowtowed into societal germophobia.

    In my own case I’m due for a routine endoscopic exam. I called my gastroenterologist’s office to ask if they were doing procedures now. Yes, but I have to get tested for Covid-19  first and then  spend 72 hours in self-isolation before coming in. I told them I would call back.

    We are just beginning to see the utter destruction of the economy take hold, Huzzah, we’ll be safe from the virus but we’ll be living in poverty, dependent on the government for our meager existence. 
    https://www.bloomberg.com/news/articles/2020-05-12/covid-19-s-health-effects-can-last-long-after-virus-is-gone?sref=QJyGlEuQ

    "More than one million people around the world have been deemed recovered from the coronavirus, but beating the initial sickness may be just the first of many battles for those who have survived.

    Some recovered patients report breathlessness, fatigue and body pain months after first becoming infected. Small-scale studies conducted in Hong Kong and Wuhan, China show that survivors grapple with poorer functioning in their lungs, heart and liver. And that may be the tip of the iceberg.

    The coronavirus is now known to attack many parts of the body beyond the respiratory system, causing damage from the eyeballs to the toes, the gut to the kidneys. Patients’ immune systems can go into overdrive to fight off the infection, compounding the damage done."


    https://metro.co.uk/2020/05/12/new-york-now-has-100-children-suffering-deadly-covid-19-related-kawasaki-disease-12693774/

    "Governor Cuomo said: ‘We have about 100 cases of an inflammatory disease in young children that seems to be created by the Covid virus. this is something that’s just starting…the symptoms of the children are analyzed to the Kawasaki disease or toxic shock syndrome. ‘It’s an inflammation of the blood vessels and can affect the heart..if we have this issue in New York we probably have it in other states. These children don’t present the usual Covid symptoms, they’re not respiratory symptoms.’ The governor did not share any further details about the three children killed by the condition. Kawasaki disease is usually very treatable, and can be managed with medications as common as aspirin. The illness is rare, with just 20,000 cases recorded annually in the US."

    Not so rare anymore, but so sorry for your inconvenience.  /s

    fastasleepknowitallsconosciuto
Sign In or Register to comment.