JPMorgan Raises Apple Price Target

Slowing iPhone demand has been a thorn in the side of Apple, Inc. AAPL in recent quarters, but one Wall Street analyst raised his price target for Apple and said the next class of iPhones will be well-received.

The Analyst

JPMorgan analyst Samik Chatterjee reiterated his Outperform rating for Apple and raised his price target from $233 to $239.

The Thesis

Chatterjee said new features, such as organic light-emitting diode displays, faster modems and virtual reality capabilities, will help drive stronger-than-expected demand for the 2020 class of iPhones.

“We are now turning incrementally positive on the volume outlook for iPhone shipments in 2020, led by channel checks from our global supply chain and smartphone analysts, which suggest that Apple is likely to pull an additional lever in the form of a refresh of the legacy iPhone SE/Iphone 8 model to address a much more ‘value’ category than it has been used to with its recent launches,” Chatterjee wrote in a note.

Chatterjee isn’t the only analyst to be optimistic about the outlook for iPhone demand.

On Monday, Wedbush analyst Daniel Ives said recent checks in Asian suggest the trade war hasn’t had as large of an impact on Apple’s China business as some had feared. Ives estimates between 60 million and 70 million Chinese iPhone users will be looking to upgrade their devices within the next 12 to 18 months.

Chatterjee is predicting Apple will unveil three OLED iPhones with 5G modems in Sept. 2020 with display sizes of 5.4, 6.1 and 6.7 inches. He also said at least two of these devices will have 3D Sensing technology that will facilitate augmented and virtual reality capabilities.

Price Action

Apple shares traded around $200.38 on Tuesday morning.

Related Links:
Apple's Stock Falls On Analyst Downgrade

Analyst: The G-20 Winner 'Is Clearly Apple'