Apple stock earns a new Street-high target on iPhone growth and China resilience
Wedbush analysts lifted their price target on Apple (AAPL) by $10 to $250 per share heading into 2024.
Apple stock is also reiterated as Wedbush’s Top Tech Pick for 2024.
“We believe Apple will be the first $4 trillion market cap by the end of 2024 given the pace of growth and monetization we estimate for Cupertino over the next year,” analysts wrote in a client note.
“We believe Apple is heading into a strong holiday season over the coming weeks that should translate into iPhone 15 growth that exceeds Street estimates for the December quarter on the heels of strong upgrade activity within the US and China markets that is resilient despite the bear noise.”
Wedbush analysts state that recent Asian supply chain checks into the holiday season and early 2024 show no negative revisions around iPhone units. This suggests a consistently strong consumer demand environment for the iPhone 15.
Analysts express confidence in the 220 million to 230 million units target for FY24, and there is potential for upside if the current pace of upgrade activity continues into the March and June quarters.
Analysts also believe that the Street underestimates the underlying upgrade opportunity in China during the December quarter and FY24.
“We estimate right now there is north of 100 million iPhones in China in the window of an upgrade opportunity and despite Huawei and geopolitical headwinds, Apple is seeing a very healthy December quarter for iPhone 15 in mainland China,” they added.
Overall, analysts highlight a “golden opportunity” to own Apple shares (NASDAQ:AAPL) for the next year.
“With a growing iPhone business again into 2024 on the heels of what we view as a new tech bull market beginning, Apple is poised to have a strong year ahead.
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