Analyst downplays iPhone 12 launch, serves Apple lowest price target since COVID19 ahead of Q3 earnings

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Today analyst Jeff Kvaal who writes for the Wolfe Research firm served Apple it’s worst price target yet during COVID19, $315, despite others reaching as high as $400. The analyst says that despite hopes, the iPhone 12 with 5G support will not be a “supercycle” moment for Apple, adding the company will not recover after COVID19.

“We do not expect a 5G supercycle, argue against an independent services valuation, and do not consider Apple a stronger company on the other side of the pandemic,” wrote analyst Jeff Kvaal, who issued a $315 price target on the stock.

Bloomberg

Apple’s stock did fall 4% on Friday following news the company is facing investigations in multiple States, with a possible lawsuit in Texas over deceiving customers. However, the stock has grown more than 60% since March, the start of the COVID19 pandemic in the United States. Additionally, despite the global health crisis Apple has still managed to release a new iPhone and iPad.

Wolfe says that Apple’s longterm plans and “fundamentals” will not be able to support the positive gains since March, largely in part due to the iPhone 12. The firm says that the 2020 iPhone is being overhyped, downplaying the launch saying:

Much of Apple’s recent advance has been related to the upcoming launch of a 5G version of the iPhone. Wolfe downplayed the tailwind this product could represent. “We believe Apple’s iPhone 12 orders into its supply chain are flat to below last year’s iPhone 11 orders,” the firm wrote. It added that iPhone sales “decelerated sharply during the 2008 recession,” a trend that suggested similar weakness in the current economic environment.

Bloomberg

The low price target comes a week before Apple holds its Q3 earnings call where the full impact of COVID19 on the company will be announced. Apple Terminal will be covering the call live here on and on Twitter @AppleTerminal.

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Sami
Sami started falling in love with Apple in 2010 with the iPhone 4S. As a registered developer, he deeply admires the world of Apple. Sami is an aspiring journalist, writer, and actor. He also has devoted his life to sharing his passion and knowledge with others around the world.