Apple has delivered market-beating gains for investors, but this top tech
stocks is poised for more gains. Apple is powering some of the most in-demand
consumer products this season. That's just the start of why this stock is a
compelling buy right now.
The Major Catalysts for
This Apple Stock.....
1. Major Tailwinds for Apple’s
iPhone 12 Launch.....
various headwinds associated with the coronavirus delayed the release of
Apple’s iPhone 12, the new smartphone was finally unleashed on the market on
iPhones offer 5G connection speeds, which could trigger a healthy upgrade
cycle, although 5G coverage remains spotty right now.
moved up 5% Tuesday after Nikkei reported that Apple plans to make up to 96 mil
iPhones in the first half of 2021, a 30% year-over-year increase.
Upgrades for Apple Stock.....
Wedbush analyst Daniel Ives’ latest checks, there is robust demand for the new
handset, both domestically and in the key Chinese market. In fact, the analyst
thinks the Street is underestimating the expected sales for Apple’s flagship
“With more order activity kicking in
over the last few weeks for iPhone 12 our initial reads are very bullish and
give us incremental confidence in our supercycle thesis on iPhone 12,” the 5-star analyst said. “While the Street is forecasting roughly 215
million iPhone units for FY21, we believe based on the current trajectory and
in a bull case, Cupertino has potential to sell north of 240 million units
which would eclipse the previous record of 231 million units sold in FY15.”
estimates Apple’s supply chain is expecting the delivery of 80 million iPhone
12s during the initial launch period, with the potential to even reach the mid
was anticipating 75 million units as the “line
in the sand,” and already eight weeks ago, the figure was “in the 65 million to 70 million range.”
“We have not seen a launch uptrend
such as this in a number of years for Apple and the only iPhone trajectory
similar would be the iPhone 6 in 2014 based on our analysis,” Ives noted.
lead times on Apple’s website as an indicator, Ives says “pre-orders tracked more than 2x its predecessor iPhone 11 thus far.”
demand in the “key china region”
looking “very healthy,” Ives believes
this will be the “strongest product cycle
for Cook & Co. thus far since iPhone 6 in 2014.”
Ives rates Apple stock an Outperform (i.e. Buy), while lifting his price target
from $150 to $160. The new figure suggests upside of 63% over the next 12
The stock has a Moderate Buy consensus rating, based on 23 Buys, 6 Holds
and 1 Sell. According to the $131.39 average price target.
Lucrative Services Business.....
Apple is also growing its lucrative services business. It continues to
invest in streaming with Apple TV+ and will launch Apple Fitness+ on Dec. 14.
Revenue from services -- including Apple Music, Apple Card, Apple Pay, News+,
Arcade, iCloud, the App Store, Apple TV+, and AppleCare -- comprised 22% of the
business in the most recent quarter and is Apple's fastest-growing revenue
All of these products and services lead to billions in cash flow. That
allows Apple to invest in the future while also returning cash to shareholders
through dividends and buybacks.