Apple Shares Have 'A Lot Of Gasoline Left In The Tank,' Says Wedbush

Wedbush analyst Daniel Ives says that despite topping a $2 trillion market capitalization this week, Apple (AAPL) shares have a "lot of gasoline left in the tank with an iPhone 12 'supercycle' on the near-term horizon."

While a "soft" macro environment and COVID-19 are weighing on near-term consumer demand trends, Apple has a "once in a decade" opportunity over the next 12 to 18 months, Ives tells investors in a research note. The analyst estimates roughly 350M of Apple's 950M iPhones worldwide "are in the window of an upgrade opportunity."

China remains a "key ingredient" in Apple's growth as roughly 20% of iPhone upgrades will be coming from the region over the coming year, says Ives. The analyst believes many on the Street are "underestimating the massive pent-up demand around this supercycle for Apple." Ives maintains an Outperform on the shares with a $515 price target and $600 "bull case."

Apple in afternoon trading is up $19.79 to $492.89.