JP Morgan raises AAPL price target to $210 over potential 5G iPhone SE launch | AppleInsider

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Investment bank JP Morgan has raised Apple’s price target to $ 210, citing high demand and expected earnings in early 2022, as well as the prospect of a 5G iPhone SE.

In a note to investors seen by AppleInsiderJP Morgan analyst Samik Chatterjee believes Apple shares have “managed to reverse the poor performance” of the first half of 2021, due to improved demand expectations for the iPhone 13.

Although it has been going well so far, “most of the upside realization of revenue and earnings” is believed to be yet to come, and will likely do so in early 2022. More updates to iPhone shipments are anticipated from consensus, in part due to rumors of a new iPhone SE.

An iPhone SE with 5G connectivity is forecast to launch in early 2022. The smartphone is believed to have the potential to drive upgrades from an installed base of older iPhones estimated to be around 300 million units, as well as to attract switches from a group of some 1.4 billion low to mid-range Android device owners.

The iPhone SE with 5G will become “the most affordable iPhone 5G in the range” and could lead to a more frequent update schedule for the model. After the 2022 launch, the iPhone SE could enjoy a “frequent annual update in the future.”

“We believe that the focus on the iPhone 13 supply and demand situation is prompting investors to underestimate the relevance of the iPhone 5G SE to the fiscal year 22 product cycle,” says JPM, while increasing his forecast. units for the full year 2022 to 250 million units. roughly 10 million above the full year 2021 figures.

In turn, JP Morgan has raised its December 22 price target for Apple to $ 210, above the $ 180 target it set in August. Along with the potential revenue from the iPhone, the favorable outlook is also based on the benefits of a “business transformation into services,” as well as installed base growth, “technology leadership,” and Apple’s potential to deploy. capital where needed.

While the bank also called them “overweight,” Apple’s stock is also said to be one of the “best options in 2022.”

The target price was raised to $ 210 based on an increase in the earnings-to-earnings multiple of approximately 30x, and an estimate of earnings per calendar year of $ 6.90. The firm notes that the multiple rose from the previous 26x, and AAPL has traded closer to 30x “following the re-rating due to growth in Services, as well as expectations of better execution in the product cycle.” .

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