Wedbush boosts Apple target to $450 ahead of 'massive' iPhone cycle

Wedbush analyst Daniel Ives raised the firm's price target on Apple to $450 from $425 and keeps an Outperform rating on the shares. The stock closed Friday up 95c to $383.68. During 2021 Apple will be the first company valued at $2 trillion given its "5G tailwinds and services momentum potential over the coming years," Ives tells investors in a research note. The analyst is seeing a "continued demand snapback" in China and believes the stage is setting up for a "massive pent up" iPhone 12 cycle heading into the fall. He estimates roughly 20% of iPhone upgrades will be coming from China over the coming year. Between 60M to 70M iPhones are in the window of an upgrade opportunity over the next year, says Ives, who has increasing confidence in the iPhone 12 growth story following channel checks in Asia. Apple is the analyst's favorite name to play the 5G theme and he "strongly" believes a "further re-rating of Apple's stock is on the horizon."