JPMorgan analyst Samik Chatterjee is turning "incrementally positive" on the volume outlook for iPhone shipments in 2020.
Global supply chain and smartphone channel checks suggest that Apple (AAPL) is likely to "pull an additional lever" in the form of a refresh of the legacy iPhone SE/iPhone 8 model to address a much more "value" category relative to recent launches, Chatterjee tells investors in a research note.
The analyst believes the incrementally positive volume outlook for 2020 is likely to drive upgrades to consensus earnings expectations and positive sentiment for Apple shares. This would mark a "significant change" from downward revisions to near-term earnings over the last few months amid concerns around the impact of the U.S.-China trade war, Chatterjee believes.
He increased his 2020 iPhone shipment outlook to 195M units and his fiscal 2020 and 2021 earnings per share estimates to $13.00 and $15.30 from $12.85 and $15.10, respectively.
The analyst also boosted his price target for Apple to $239 from $233 and keeps an Overweight rating on the name.
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