J.P. Morgan raises AAPL target price to $365 citing iPhone SE potential

Iphone Se 2020 Home Button
Iphone Se 2020 Home Button (Image credit: iMore)

What you need to know

  • J.P Morgan has raised its AAPL target share price.
  • That's because of the potential of the iPhone SE.
  • They believe it has potential in emerging markets thanks to its price tag.

J.P. Morgan analyst Samik Chatterjee has raised his AAPL target share price to $365 dollars.

As reported by MarketWatch:

J.P. Morgan analyst Samik Chatterjee lifted his price target on Apple Inc.'s stock AAPL, +0.43% to $365 from $350 on Thursday, writing of his optimism for the lower-cost iPhone SE's potential in emerging markets.

Chatterjee notes that Apple "has struggled to date to build a material presence in India on account of premium price positioning as well as other drivers." Apple's iPhone's in the country are usually subject to hefty tariffs because they aren't made in the country. Apple's increased manufacturing presence in the country is helping to change that, as it the iPhone SE's very attractive price tag.

Chatterjee estimates that if Apple can capture "roughly half" of the 30 to 35 million opportunities, it could translate to "215 million steady annual replacement run-rate for iPhones globally", thought to be worth $7 million in revenue.

Chatterjee retained his overweight rating on Apple's stock and raised the target price from $350 to $365. After a February high of $327, Apple's share price fell sharply in the face of the coronavirus pandemic and warnings that it would not meet its Q2 revenue guidance. It fell to a low of $224, however at the time of writing is trading at $318.11, recovering much, but not all, of its COVID-19 slide.

Apple is continuing to tap into its Indian market, recently offering customers the option to customize their Macs before purchasing through Authorized Resellers.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.

Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9