Needham Raises AAPL Target on iPad, Mac Sales

| Apple Stock Watch

Needham & Company analyst, Charlie Wolf, is raising his target price for Apple’s stock from US$280 up to $375 thanks to iPad and Mac sales that are much stronger than anticipated. Mr. Wolf also noted that iPhone sales are on track to 40 million units this year, according to TheStreet.

“The upgrade cycle of iPhone owners appears to be occurring much faster than we previously assumed,” he said. “The faster upgrade cycle in part reflects AT&T’s liberal upgrade activation policy, in which the company is waving its early termination fee for most iPhone subscribers.”

That faster upgrade cycle means customers are upgrading their iPhone every two years on average instead of on a three-year cycle.

Mr. Wolf expects that if rumors of a special iPhone model just for Verizon pan out, Apple could double its share of the smartphone market in the United States, too.

Mr. Wolf is projecting 14 million units in Mac sales this year, up more than 50 percent from his earlier forecasts. iPad sales now targeted at 12 million, making his earlier 20 million units in 2019 outdated, too.

Apple is currently trading at $260.46, up 0.37 (0.14%).

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Constable Odo

Eventually, target prices will be in the $450 range while current Apple share price sits at $260 for the rest of the year.  That’s got to be totally weird.  I’m sure investors are getting tired of hearing about upgrades and the stock doesn’t react.  They’re not even nibbling at the bait.  Something like hearing the boy who cried wolf too many times and no one paid attention to him after a while.  Though, I’m willing to bet that the first minor analyst downgrade will send Apple shares plunging.  This stock reacts to negative news much faster than positive news.

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