Wedbush maintains its "Outperform" rating on Apple (AAPL) with a 12-month price target of $325, citing the company's robust growth prospects despite recent market concerns. The report highlights that fears surrounding Apple's performance, particularly in China, are exaggerated. Analyst Daniel Ives notes, "The panic and bear frenzy around Apple is way overdone," emphasizing that the company's strong U.S. and global growth should offset softer iPhone sales in China.
The report is centered around Apple's upcoming December earnings release, with expectations that the company will meet Street estimates. Wedbush is optimistic about Apple's Services segment, which is pivotal to its $4.5 trillion valuation over the next 12 to 18 months. The introduction of Apple Intelligence and the iPhone 16 upgrade cycle are seen as catalysts for a significant growth phase, with ~20% of the global population expected to access AI through Apple devices in the coming years.
Wedbush acknowledges the challenges posed by competition and macroeconomic conditions but remains confident in Apple's ability to leverage its extensive installed base of 1.5 billion iPhones and 2.3 billion iOS devices. The report suggests that the current sell-off presents a "golden opportunity" to invest in Apple as it embarks on a consumer AI revolution.
Apple's stock closed at $223.83, up 0.53% on January 22, 2025.