A Bull Vs. Bear Take On Apple's Stock

A Bull Vs. Bear Take On Apple's Stock

Over the past year, Apple Inc. AAPL shares have risen more than 100%, trading from the $150 level to hitting an all-time high north of $315 per share earlier this month. Despite the strong performance, there are some analysts with mixed outlooks.

Based on 33 analysts with a 12-month price target, the average price target on Apple's stock is $303.50, with a high of $400 and a low of $188, according to TipRanks.

Here is a bullish and bearish argument from two analysts.

The Apple Bear

On Dec. 17, Rosenblatt Securities analyst Jun Zhang maintained a Sell rating on Apple’s stock.

"We believe iPhone 11 sales were strong in China in November; however, the cheaper retail price of the iPhone 11 has driven consumers to buy the iPhone 11 instead of the iPhone 11 Pro and all older models," the analyst said at the time.

The firm expects overall iPhone production to drop 40-50% quarter-over-quarter.

“We expect more production cuts in March as Apple will see increasing headwinds from aggressive 5G smartphone launches in China and 5G service promotions in China begin in March," the analyst said.

Rosenblatt recently raised its price target from $150 to $250 but maintained its Sell rating.

The Apple Bull

On Jan. 16, Tigress Financial analyst Ivan Feinseth expressed his belief of a further upside in Apple.

"Apple continues to benefit from a strong demand cycle for its iPhone 11 that will be followed by an upgrade supercycle later this year when it launches 5G-enabled iPhones," the analyst said.

Feinseth also mentions the growth opportunity from the variety of services Apple provides.

"Growth in its Services, including Apple TV+, Apple Arcade, Apple News, Apple Pay, and the Apple Card, should exceed a $60+ billion run rate when Apple reports results," the analyst said.

What's Your Take On Apple?

Apple is scheduled to report first-quarter earnings after Tuesday's market close. Analysts are looking for earnings of $4.54 per share on revenue of $88.39 billion.

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