- The stock price of Apple (NASDAQ:AAPL) has received a price target upgrade from Piper Sandler recently from $130 to $135. These are the details.
The stock price of Apple (NASDAQ:AAPL) has received a price target upgrade from Piper Sandler recently from $130 to $135. And Piper Sandler analyst Harsh Kumar is maintaining an Overweight rating.
In the investor report, Piper Sandler is increasing its iPhone 12 estimates for the December quarter due to heavy carrier promotions. These promotions are expected to drive demand for new handsets. According to AppleInsider, Kumar noted that the iPhone 12 launch is considered a “subscription battleground for carriers.”
These major promotions could drive substantial demand — which could be seen as a sharp contrast to the company’s survey that suggested “lackluster demand.” And Kumar noted that the carriers are being aggressive with subsidies near the point where they are giving the phones away for “minimal costs.”
“In our view, it is nearly impossible for the consumer to ignore the upgrade possibility given the current subsidy offerings,” wrote Kumar.
To conduct more research, Piper Sandler also spoke with reps at carrier stores and learned that there was a high level of incoming calls and walk-in traffic that coincided with the launches of the iPhone 12 and iPhone 12 Pro. And this activity is much higher than other recent iPhone launches.
Kumar also raised the iPhone estimates for the December quarter by around 8 million units due to better-than-expected demand. Now Piper Sandler is expecting 73 million units for the quarter — up from a previous estimate of 65 million.
Based on these figures, Apple is expected to hit $7 billion in additional revenue for the quarter so the iPhone revenue for the period is expected to be nearly $63 billion.
Kumar also pointed out that the demand for the iPad and Mac have been surging due to remote work and education. For the third quarter.
Disclosure: I have a small position of AAPL stock in my portfolio.