Today, prominent Citi analyst Jim Suva raised Apple’s price target from $310 to $400 and has maintained its Buy rating. The analyst who covers and details Apple’s business model says that a September iPhone 12 launch will happen but actual shipments of the iPhone will be delayed.
Due to COVID19 and its global economic impact Suva says that estimated consensus iPhone sales have gone done around 15% year on year in the past 2 quarters. Additionally, potential share gains from China-based Huawei may produce $8 billion in incremental sales in addition to Apple’s strong lead in wearable devices and services.
“We see Apple shares as attractive given the revenue diversification, unique product + service set and potential for strong cash flow generation and shareholder returns.”
Apple’s performance on the stock market has been doing better as the company begins to reopen stores, and as countries begin to revive their stale and stagnant economics. The iPhone 12 is reported to be delayed, however, whether that includes a keynote delay and a shipment delay remains unknown.