Apple Stock: What You Should Know Before the Mega Events

Apple is in the limelight as the company gets ready for the much-awaited mega event on September 15. Unlike the previous September events, when the company launches new iPhone, Apple is planning to reveal a new Watch and an updated iPad. However, Apple plans to unveil its new, 5G iPhone next month.

The 5G Factor

Investment firm Baird analyst William Power recently increased his price target for Apple stock to $133 from $109. The analyst cited Baird’s September 2020 consumer survey, in which 1,500 people were asked some questions to gauge iPhone growth and demand. The survey shows that iPhone is gaining market share. The survey also showed that almost 60% of U.S. respondents plan to buy an iPhone as their new phone purchase. This, according to Power, shows a record demand for iPhones.

The analyst thinks that having the 5G features will help Apple see an increased demand of its new iPhones, as users will feel the need to upgrade to the new technology standards to keep up with their connectivity needs. The survey also showed that over 38% of the respondents have not upgraded their devices over the last 3 years. But when Apple releases its 5G iPhones, these consumers will be inclined to buy the new devices due to 5G.

Power also thinks the work-from-home trend globally will expand Apple’s customer reach and device sales.

Earlier this month, JP Morgan upped its price target for Apple stock to $150 from $115 and maintained Overweight rating. The firm’s analyst Samik Chatterjee is also bullish on the 5G factor in the coming iPhones, work from home trends and software business of Apple. The analyst said that Apple is not only seeing a strong growth in its Services segment, but the Products segment is also showing signs of a promising comeback.

In another rating action, BofA analyst Wamsi Mohan raised his price target for Apple to $140 from $117. The analyst cited his technical analysis of the stock, which shows a strong buy signal based on the market performance of Apple’s shares as compared to the broader industry.

Valuation Concerns

However, doubts remain about Apple valuation, and not all analysts are bullish on the stock. Earlier this month, Goldman Sachs reiterated its sell rating for the stock, and said that Apple’s growth in Products and Wearables segments is not enough to justify its valuation. However, the company said that it’s not a “consistent” bear on the stock, and could change its rating if Apple consistently shows progress.