Apple (NASDAQ: AAPL) stock price soared sharply in the last twelve months amid investors’ confidence in its revenue base diversification and prospects for the launch of 5G supported iPhone. The market analysts expect Apple stock to cross the $400 level soon due to strong future fundamentals.
The shares of the largest tech company are likely to face tough second-quarter results as smartphone sales volume dropped 25% year over year in the second quarter, according to new Counterpoint Research data.
They also predict that iPhone sales declined 23% during the second quarter but iPhone SE volumes grew sharply during the quarter. The research firm claims that sales volume for the SE remained strong from both postpaid and prepaid channels.
Although Apple’s short-term fundamentals present coronavirus related headwinds, analysts are hopeful that it will make a strong recovery in fiscal 2021 and beyond.
Canaccord Genuity provided a price target of $444, expecting Apple stock to benefit from the long-term 5G investment cycle. The firm maintained a buy rating, with expectations that revenue from the services segment outpace Apple’s total growth. Apple stock is currently trading around $380.
BofA analyst Wamsi Mohan has set a price target of $410, citing strong services revenue growth in the following quarters along with robust results from App Store. Wamsi Mohan believes that Apple is among the most liquid investments to face an unstable environment.
Meanwhile, Needham Laura Martin looks significantly bullish over Apple’s future performance as Laura sees wearables, iPhone and services are likely to drive long-term value for investors. The firm provided a price target of $460 for Apple stock, representing a substantial upside from the current level.
Apple is scheduled to report June quarter earnings this month. The consensus revenue estimate is $51bn and earnings are expected to stand around $2.04 per share.