Wedbush has raised its price target for Apple Inc (NASDAQ:AAPL) to $325 pr share from $300 while maintaining an 'Outperform' rating on the tech giant.
In a note issued Friday, Wedbush analyst Daniel Ives said Apple can expect strong iPhone growth heading into 2020. He pointed out that iPhone units could exceed 190 million for FY20 based on the demand trajectory.
"While shares of Apple are up 65%+ year to date, we believe the tech stalwart is still in the midst of a renaissance of iPhone growth heading into 2020 that will further catalyze the stock higher as it gets re-rated from the Street,” Ives wrote in a note to clients.
“Apple continues to be one of our favorite tech names heading into the next 12 to 18 months as the combination of a super cycle demand driver between iPhone 11/5G lineup of smartphones and a robust $60 billion services platform by FY21 will be the linchpins of the Apple growth story and stronger fundamental outlook looking ahead and thus command a higher multiple from current levels in our opinion," he added
The analyst also said service is the next leg of growth for Apple, noting that Apple and Disney could displace roughly 10% of Netflix's installed base.
"If Apple executes with minimal speed bumps and aggressively acquires content given the company’s massive installed base and unmatched brand loyalty we believe reaching the 100 million subscriber number in the medium term (3-4 years) is a realistic goal that could translate into a $7 billion to $10 billion annual revenue stream over time," Ives concluded.
Apple stock recently traded 0.60% higher to $264.16 in New York.
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