Wedbush: Apple Set for “Monster Growth Cycle”

24 MARCH 2022 - While JP Morgan’s Chatterjee was focused on the states in his Wednesday note, Wedbush analyst Daniel Ives was going global, and coming back just as enthused. Apple 3.0 ran part of the note he wrote. Quoting part of that part:

Based on our recent supply chain checks in Asia we believe Apple is seeing stellar iPhone 13 demand globally on this elongated product cycle which is the drumroll to iPhone 14 this Fall. Supply chain shortages continue to be an issue for Cupertino, however we are seeing some discernible improvements into the June quarter which bodes well for the upcoming iPhone 14 release.

While he has been awake since the first of the year, he thinks the flight from tech has been a bit much. Quoting his note again:

…we believe the tech sector is as oversold as we have seen in the last five years and we would strongly be buying cloud, software, cyber security, chips, and stalwart tech names led by FAANG [Facebook, Amazon, Apple, Netflix, Google] with Apple our clear favorite.

Apple is his favorite 5G play, according to the note. Additionally, he and his “believe the company is setting up for a monster growth cycle over the next 12 to 18 [months] that is not baked into shares at current levels.”

Ives has an “Outperform” rating on Apple shares. His price target on the shares is $200.