Consumer electronics giant Apple (AAPL) has seen its shares come roaring back from a swoon following its March-quarter earnings report. In fact, Apple stock is near its all-time high.
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Investors have been bidding up Apple stock ahead of the company’s June-quarter earnings report, due July 27. Meanwhile, anticipation is growing for the company’s next-generation handsets, the iPhone 13 series, due out this September.
Apple bulls on Wall Street say investors have been too pessimistic about the company’s near-term prospects.
JPMorgan analyst Samik Chatterjee on Tuesday said it is “time to start buying” Apple stock as second-half 2021 catalysts are visible. In a note to clients, he said iPhone 13 expectations are too low.
Apple Stock Gets Price-Target Hike
Chatterjee expects Apple stock “to outperform the broader market materially” in the second half of the year after underperforming significantly during the first half. He reiterated his overweight rating on Apple stock and raised his price target to 170 from 165.
However, other analysts are more cautious.
Loop Capital Markets analyst Ananda Baruah on Monday maintained his buy rating on Apple stock but trimmed his price target to 150 from 160.
After hitting a record high of 145.09 on Jan. 25, Apple stock fell 20% over the next several weeks before recovering somewhat. It climbed as high as 137.07 on April 29 but then dropped 11% over the next couple of weeks.
On July 2, Apple stock broke out of a cup base at a buy point of 137.17, according to IBD MarketSmith charts. In intraday trading on Wednesday, it rose as high as 144.89.
However, on the stock market today, Apple stock pulled back along with the broader market. It ended the regular session Thursday down 0.9% to 143.24.
IPhone 13 Handsets Due In September
Cupertino, Calif.-based Apple is on track to unveil its 15th-generation iPhones in September. Last year’s models were delayed by production issues during the Covid-19 pandemic.
The iPhone 13 likely will be a modest refresh to the current iPhone 12 handsets, which were the first iPhones built for faster 5G wireless networks. Analysts predict the iPhone 13 will feature improved displays, a faster processor and better cameras.
T-Mobile (TMUS) will use the new iPhones to promote its high-performance, midband 5G wireless network in the U.S., analysts say. T-Mobile is seen ramping up its advertising and marketing efforts to attract switchers to its network from AT&T (T) and Verizon (VZ). AT&T and Verizon will not have midband 5G networks widely deployed until 2022.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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