Wedbush boosts AAPL target share price to $350

Wedbush analyst Dan Ives has raised his Apple target share price to $350, citing "robust performance" of services and the iPhone 12.

As AppleInsider reports:

Investment bank Wedbush is raising its Apple price target to $350 on what it describes as a robust performance by the company's services, plus prospects of recovering demand and the highly anticipated "iPhone 12."

In a note to investors seen by AppleInsider, lead Wedbush analyst Daniel Ives maintained that there are "darker days" ahead for the economy, but adds that clients should use near-term uncertainty as an "opportunity to buy the stock for the other side of the dark valley."

According to the report, investors are mainly focused on Apple's services sector, the performance of which Ives described as "robust". Ives also believes that Apple's plan to reopen more stores and a return to normal service within its supply chain will pave the way for Apple's post-COVID resurgence. Ives believes that around 350 million people fall into Apple's upgrade window, which could signal high demand for Apple's next device.

Ives reiterated his previous prediction that Apple's 5G iPhone lineup would debut towards the end of the year in November or December. Regarding Apple's target price:

The analyst is maintaining Apple's outperform rating, but has bumped its 12-month price target for Apple from $335 to $350, stating that the "eye of the storm is in the rear view mirror" for Apple's supply and demand.

That $350 price target is based on a 9.2x multiple for Services and a 4.3x multiple for Apple's mature hardware and iPhone sector. Wedbush's price-to-earnings multiple is 24.9x for the 2020 fiscal year.