• On Wednesday, Apple stock saw a spike, probably due to positive analyst sentiment.

What’s going on with Apple stock

Apple (NASDAQ:AAPL) stock jumped 2% in the first half of trading on Wednesday, most likely due to a positive note from investment bank Wedbush in the morning.

Why you should care

According to its note today, Wedbush cited “stellar iPhone 13 demand globally” as the basis for its optimism on the stock. According to MarketWatch, iPhone 13 sales are vital in the United States. Moreover, the sales have been robust in China, with Apple gaining another 3% market share in the latter nation.

Furthermore, Wedbush thinks Apple is in an “elongated product cycle” and that the iPhone 13’s popularity will turn into “the drumroll to iPhone 14 this Fall” (keeping today’s surge going all year long). On top of that, the firm expects Apple to sell 30 million new 5G-enabled iPhone SEs throughout 2022.

For what it’s worth, investment bank J.P. Morgan (NYSE:JPM) appears to agree. It also notes “incremental data points [that] support our positive outlook for iPhone 13 demand into [the calendar year 2022],” to support its own $210 price target on Apple and overweight rating.

What now

For Apple, the good news is just beginning.

Wedbush Securities sees that Apple’s “monster” growth cycle will continue for the next 12 to 18 months. Wall Street analysts generally just forecast 12 months ahead, so they are peering deeper into its crystal ball than usual. As a result, this rally may potentially last through late 2023. Furthermore, Wedbush thinks the rally has been “baked into shares at current levels.”

Our experts agree. Apple stock costs less than the typical company in the S&P 500 (^GSPC), which costs 25.5 times earnings, despite being priced at 25.6 times earnings. However, Apple is not a run-of-the-mill firm. Therefore, its share price may well be justified going higher than it is currently.

(Visited 21 times, 1 visits today)