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A Wedbush analyst raised the price target on Apple (NASDAQ:AAPL) to $220 per share, from the prior $200, which is a new Street-high.
The analyst, also known as a big tech bull, said checks showed demand is “holding up firm” as Apple prepares to launch iPhone 14 in the fall.
“We believe the initial order for 90 million iPhone 14 units out of the gates has stayed firm and will be roughly flat with iPhone 13 despite the macro storm clouds,” the analyst said in a client note.
Wedbush analysts estimate that almost 25% of 1 billion iPhone users globally are yet to upgrade their phones.
“We believe Apple is expecting another heavy iPhone Pro and Pro Max mix shift which is a clear positive for ASPs heading into FY23. While the base iPhone will stay at the same price we believe a $100 price increase on the iPhone 14 Pro/Pro Max is likely in store given component price increases as well as added functionality on this new release,” the analyst added.
The analyst also believes that Apple is witnessing a better situation from a supply perspective. This will help the Cupertino-based titan ramp up iPhone deliveries with the analyst seeing 220 million iPhone units in FY23 as a “low bar” for the company to beat.
“Apple remains our favorite tech name as we reiterate our OUTPERFORM rating,” the analyst concluded.
Earlier today, a Credit Suisse analyst upgraded Apple shares to Outperform from Neutral with a $201 target price.
