Apple (AAPL: NSD) is the world’s most valuable company, with a market cap of nearly $3 trillion. Wedbush Securities analyst Daniel Ives has set his sights on $240 for Apple’s stock, indicating a potential 26% upside from the current price of $189.69.
However, its revenue fell by 1% y/y to $89.5 million in the fourth quarter. Despite this, it achieved record levels of iPhone sales and services revenue, and expanded its active installed base of devices.
Key Findings for Stock Investors:
Here are the key takeaways for stock investors and financial analysts;
- Apple’s price target has been raised to a record high of $240, reflecting analyst confidence in the company’s future.
- Strong iPhone sales, a booming Services business, and the anticipation of innovative products are driving the bullish sentiment.
- The Vision Pro headset is expected to disrupt the XR landscape and open up new avenues for growth.
- Apple’s strong fundamentals, including its commitment to innovation, loyal customer base, and robust financial position, support the Strong Buy recommendation.
Growing Demand for iPhone 15 Pro Boosts ASP:
Ives attributes a significant portion of his bullish sentiment to the robust demand for the iPhone 15 Pro models. He believes that consumers are increasingly gravitating towards higher-end offerings, with the average selling price (ASP) potentially reaching $925. This represents a substantial $100 increase over the past 18 months, underscoring the allure of Apple’s premium smartphones.
Beyond hardware sales, Ives is also impressed by the resilience and growth of Apple’s Services business. This segment, encompassing a diverse array of offerings like the App Store, iCloud, and Apple Music, has consistently delivered solid performance, contributing significantly to the company’s overall financial health.
While the iPhone and Services remain Apple’s bread and butter, Ives anticipates that the upcoming Vision Pro headset could be a game-changer in the augmented reality (AR) and virtual reality (VR) space. He envisions the device ushering in a new era of immersive experiences, further expanding Apple’s reach and influence.
Conclusion:
Ives concludes his analysis with a resounding “Strong Buy” recommendation for Apple, asserting that the company’s long-term prospects remain exceedingly bright. He emphasizes the company’s unwavering commitment to innovation, its loyal customer base, and its robust financial position as key factors driving his bullish stance.
