Source: Unsplash
UBS analyst David Vogt upgraded Apple (AAPL) to Buy from Neutral with a price target of $142, up from $115.
The analyst expects iPhone demand in fiscal 2021 and 2022 to be "relatively stable in-line with historic demand trends" following an analysis of procurement, upgrade rates, and customer retention, specifically outside of China. Further, Apple's multi-year investment in the auto industry, such as self-driving car licenses and light detection and ranging patents, suggests optionality worth at least an incremental $14 per share, Vogt tells investors in a research note.
The analyst increased fiscal 2022 earnings estimates by 7% and revenue by 4% to reflect better iPhone units and average selling prices. He believes the more stable long-term iPhone demand backdrop and option value of its likely entry into the auto market are not currently reflected in Apple shares.
Comments
Log in or sign up to join the conversation.