Despite likely delays for the iPhone 12, the risk reward remains compelling, says analyst

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If you look at the fate of the FAANG family since the virus outbreak , it seems Apple (AAPL) has the most to lose. Amazon and Netflix can consider their internet-driven models to be particularly well-designed for hibernation. While Google and Facebook are losing significant advertising revenue, they are still less dependent on physical products. On the other hand, Apple has found that the disruption in the supply chain and production line is severely affecting this year’s plans. “Data-reactid =” 12 “> If you look at the fate of the FAANG family since the virus broke out, it looks like Apple (AAPL) has the most to lose. Amazon and Netflix can consider their internet-driven models to be particularly well-designed for hibernation. While Google and Facebook are losing significant advertising revenue, they are still less dependent on physical products. Apple, on the other hand, has found that the disruption in the supply chain and production line is significantly affecting this year’s plans.

The Cupertino giant laid the foundation for the launch of the iPhone 12 in September, the first model with 5G functions. The question for the most successful company in the world is whether, after the economic downturn, it is the right step to bring its flagship product into a consumer environment that is still afflicted by a global pandemic and the associated depressed economic climate.

The answer, according to Daniel Ives from Wedbush, is no. The 4-star analyst believes that there are too many variables involved to ensure a safe start on the previously scheduled date, and argues that starting in September would be a risky decision. Ives believes that the start will be postponed at the same time as Christmas time.

“Apple got a shot at its first 5G launch and lukewarm success from the gates due to a lukewarm appetite for consumers would be a disaster scenario that will further affect Cook & Co.’s thinking if they think about the timing of this product launch,” said Said Ives.

Delaying the “5G super cycle” does not change Ives’ long-term optimistic view of Apple. In fact, according to the analyst, the company’s “Teflon-like” service business is expected to reach approximately $ 60 billion in FY21. In addition, Ives claims that the stock’s risk / reward on recent coronavirus hits is “extremely convincing”.

Ives summarized: “In short, the Apple share is currently evaluating depressed iPhone devices, a delayed 5G launch and a normalization of the supply chain only in May / June. We believe that the iPhone 12 is likely to come to market now in a normalized consumer environment around the holiday season and the momentum of “springboard-like demand” will go into fiscal year 21. “

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "To this end, Ives is outperforming Apple at Um um Price target of $ 335 to follow. The implication for investors? Up 36%. (To watch Ives' track record, Click here) “data-reactid =” 18 “> To this end, Ives outperformed Apple to reach a target price of $ 335. The implication for investors: up 36%. Click here)

What does the rest of the street have to say? Apple currently has a moderate buy consensus rating based on 25 buy, 9 hold, and 2 sell reviews made in the last 3 months. The average price target is $ 318.55 and could give investors an uptrend of 30%. (See top stocks from TipRanks analysts.)

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