What you need to know
- JP Morgan has raised its Apple target share price.
- It's now up to $350, from $335.
- It also affirmed an 'overweight' rating for Apple.
Off the back of a Q2 earnings call in which Apple managed to record YoY growth despite the COVID-19 pandemic, JP Morgan has upped its target Apple share price to $350.
As TheStreet reports:
Apple was added to J.P. Morgan's Focus List of top picks and the firm's analysts lifted their share-price target for the consumer-electronics giant to $350 from $335.
The investment firm affirmed an overweight rating on the Cupertino, Calif., company's stock.
The report notes that despite recording $58.3 billion in revenue for Q2, Apple's shares dipped slightly in-after hours trading. One of the most notable aspects of the call was that Apple did not release any official guidance for its Q3 earnings. Instead, it simply stated that it expects iPhone and wearables performance to worsen and Mac and iPad to improve over the next three months.
JP Morgan's Samik Chatterjee has reportedly added Apple to its Analyst Focus List "as a top pick in their coverage area." Further, they noted that Apple's stock "should gain from investor positioning for the ramp-up of 5G service, increasing confidence in Apple's service." They also believe that Apple will benefit from "stronger-than anticipated" iPhone sales and "buoyant sales in the second half of April" thanks to the iPhone SE. It was also noted that Apple could gain from "underappreciated leverage" regarding working from home, online learning, and stay at home measures, which should improve iPad and Mac sales.
Regarding the upcoming quarter, Apple noted in its earnings call that there is a "lack of visibility and uncertainty in the near-term", making it impossible to provide guidance to investors.