Wedbush maintains its "Outperform" rating on Apple (AAPL) with a 12-month price target of $300, driven by strong demand for the iPhone 16 and the anticipated rollout of AI features. The report highlights Apple's robust installed base of over 2 billion iOS devices, with approximately 300 million iPhones poised for upgrades, and a services business valued at $2 trillion. Analysts Daniel Ives and Scott Devitt emphasize, "We believe Apple is on pace to reach the $4 trillion market cap threshold by early 2025."
The report centers on the iPhone 16's performance since its September launch, which is slightly ahead of expectations, and the upcoming holiday season is expected to further boost sales. Additionally, the rollout of Apple's AI features, including ChatGPT integration, is set to begin in April, potentially catalyzing growth in key regions like China.
Wedbush's valuation is based on a ~24x multiple for Apple's services and an ~8x multiple for its hardware ecosystem. The analysts project that Apple could sell over 240 million iPhone units in FY25, marking the highest sales year in its history. The current stock price of Apple is $242.68.