Competition fears couldn’t rattle
Apple
stock this year, and 2024 looks bright, say Wedbush analysts.
And indeed, shares of the iPhone maker are up 49% this year.
The Wedbush analysts, led by Dan Ives, wrote in a Thursday report, “The ’iPhone China demise narrative‘ was a great fictional story by the bears which is far from the reality as underlying mainland China growth remains strong for the December quarter based on our Asia supply chain checks and a key asset for the core iPhone franchise.”
Apple is still the firm’s “top tech pick,” thanks to “a strong iPhone 15 upgrade cycle,” an unproblematic holiday season leading into next year, in spite of competition from Huawei in China, and growth in the Services business. Wedbush rates Apple stock at Outperform with a $250 price target. That’s 29% upside from Thursday’s closing price of $193.58.
“In a nutshell, 2024 is the year for [Apple CEO Tim] Cook & Co. to show iPhone growth again and further monetize its golden installed base that Cupertino has built,” analysts wrote.
An uptick in consumer spending and the iPhone replacement cycle is one of several possibilities for growth, wrote Barron’s reporter Eric Savitz in a cover story earlier this month. Other opportunities might be found in acquisitions, the mixed-reality field, CarPlay, and Search and artificial intelligence, he added.
Top of mind for the here and now, however? Investors will be keeping a close eye on the patent battle which temporarily paused two versions of the Apple Watches.
Write to Emily Dattilo at [email protected]
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