Apple Inc.
Apple Analyst's Insight:
Wedbush analyst Daniel Ives, maintaining an Outperform rating, raised the price target from $240 to $250, reaffirming Apple as the firm's "Top Tech Pick."
Apple's Future Outlook:
Ives predicts Apple will become the first $4 trillion company, likely achieving this milestone by the end of 2024. This optimistic outlook stems from the anticipated pace of growth and monetization at the company in the coming year.
The analyst foresees a robust holiday season for Apple, projecting iPhone growth to outperform expectations in the December quarter. Strong upgrade activity in the U.S. and China is expected to contribute to this positive trend.
"Our iPhone 15 unit checks globally give us confidence in the 220 million to 230 million units bogey for FY24 that could show upside if this pace of upgrade activity continues into the March/June quarters," noted Ives. Despite Huawei's competition and geopolitical challenges, the upgrade opportunity in China is estimated to be over 100 million units.
Positive Factors for Apple:
Ives emphasized Apple's benefit from a higher average selling price, projecting $925 compared to the $825-$850 range observed in recent years. Concerns from Beijing in September/October are anticipated to ease as reports circulate about Apple shifting its base from China to India.
"With Services revenue back to steady double-digit growth and iPhone units that should be in the ~225 million range for FY24, we believe the 'growth demise story' of Apple being spun by bears is a dynamic we have seen constantly over the past decade, and this is just another chapter in that book," Ives commented.
Outlook for Apple in 2024:
Ives concludes that Apple is well-positioned for a strong year ahead due to a growing iPhone business and the beginning of a new tech bull market. Summing it up, he stated, "In a nutshell, Apple is in a Rock of Gibraltar-like strong position heading into 2024 with the stage set for a renaissance of growth in Cupertino."
