Analysts are extremely bullish about Apple stock, as the Raymond James analyst Chris Caso upgraded Apple shares to outperform from market perform on Thursday, by writing of his growing optimism, for the 5G iPhone models, it is expected to launch next year. Apple will offer 5G models across the price spectrum, Chris Caso believes that, it helping to provide a compelling reason for the upgrades at a time when Apple Inc is increasingly selling legacy devices.
“With an aging installed base, we think a reasonably priced 5G phone will be a very compelling upgrade,” Caso said in his note to clients. “While there’s some question about the customer utility for 5G, we think there’s enough sweat and money being spent by the carriers on this technology that they will convince customers of the utility.”
Chris Caso was initially concerned that Apple Inc might not be able to get 5G iPhones launched in next year at the same time as its peers so, due to its supplier constraints, but that view reversed when Apple settled with Qualcomm, and it also decided to use its modem in 2020 iPhone,” wrote Caso, who also set price target of a $250 on Apple shares.
The stronger than expected 5G launched could also lift the Apple suppliers, in particularly the Skyworks solutions Inc., which was also the subject of a Raymond James upgrade to outperform on Thursday. He set a $90 target on Skyworks shares.
He said it’s “at least a reasonable assumption for a cycle including a 5G phone at a mainstream, ~$750 price point,” which could help reignite Apple’s iPhone sales.