With Apple predicted to sell a record 240 million iPhones in 2021, Wedbush named AAPL as one of its top tech companies ahead of its income statement season.
In a note to investors seen AppleInsiderLead analyst Daniel Ives predicts first-quarter 2021 earnings will be the primary catalyst for tech companies such as Apple, Microsoft and Nuance. In particular, the analyst believes that stocks of technology companies could rise by 25-30% by 2021, despite concerns about the rotation.
“While estimates will continue to generate emotional contention between bulls and bears, the fundamental growth on the horizon for these next-generation technologies is unprecedented as the fourth industrial revolution begins to spread across the tech landscape,” Ives writes.
While the Wall Street consensus suggests that Apple will ship about 220 million iPhone models in 2021, Ives continues to project a figure north of 240 million. A “mind blowing” figure – about 250 million units – could also be on the cards, he added.
If the analyst’s predictions are correct, Apple’s 2021 shipments will surpass the previous record of 231 million iPhones shipped in 2015.
As Ives has stated for several months, around 350 million of the 950 million iPhones worldwide are on the upgrade window. He still believes this will lead to an “unprecedented update cycle” for Apple. Growth in China – an important prop for Ives’ bullish thesis about Apple – also looks promising in the wake of the Chinese New Year.
The analyst maintains an outperforming rating and a 12-month AAPL price target of $ 175. The target is based on an estimate of the sum of parts based on Wedbush estimates for 2022, including a 16x multiplier for Apple services of $ 1.2 trillion and a 7x multiplier for Apple’s hardware business of $ 1.9 trillion.
His bullish case is based on the same multiples that apply to a $ 1.3 trillion valuation of services and a $ 2.5 trillion valuation of equipment.
Apple’s stock price was $ 127.32 Wednesday morning, up 0.88% in intraday trading.