Wedbush analyst ups Apple target to $400 as 5G upgrade 'supercycle' looms

Wedbush analyst Daniel Ives thinks Wall Street is underestimating Apple Inc’s (NASDAQ:AAPL) growth prospects.  He said some big-time investors are failing to comprehend the “magnitude of the 5G upgrade cycle” from which the tech giant will strongly benefit. Some 215 million to 220 million units are expected for fiscal 2021 demand. Ives is so bullish on the tech giant, which he calls “a must-own” stock, that he has bumped up his target price to $400 from $350 -- his third hike since November. His target price is the highest among street analysts.  READ: Apple closes historic 2019 for Services offerings with double-digit App Store growth In a note to clients, the analyst said he’s upbeat after a visit to Asia, where iPhone suppliers appear to be doing well, implying customers want to buy. He also noted that AirPods demand is “jaw-dropping,” and he expects healthy results on January 28 and strong March guidance. “While the stock has had a massive rally over the past year and thus far in 2020, we continue to believe this is a ‘must-own’ stock into what we would characterize as a transformational 5G supercycle over the next 12 to 18 months with Apple being our favorite 5G play,” he wrote. “Our time spent in Asia last week gave us further conviction that this 5G supercycle is real and will be a major growth catalyst for iPhone sales both domestically as well as in China.” Apple stock recently traded about 1% higher to $321 a share in New York. Shares are up around 9% so far this year, 31% over three months and 53% in the past six months. Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham