Apple shares have reached a new record closing high, and the catalyst behind this surge could be surprisingly strong iPhone sales, according to Wedbush analyst Dan Ives.
Strong iPhone Sales Boost Apple Shares
On Monday, Apple shares experienced a slight 1.5% dip, sitting at $192.71. However, the stock has been steadily inching closer to its all-time closing high of $196.45, achieved on July 31.
Ives suggests that global checks indicate iPhone shipments might exceed the anticipated range of 220 million to 230 million units projected by Wall Street for Apple’s fiscal year 2024 if the pace of phone upgrades continues throughout upcoming quarters.
Positive Signs in iPhone Demand
Early indicators of this positive surprise may appear as soon as this quarter, with signs of robust demand in not only the United States but also China, even in the face of local competitor Huawei, as stated by Ives.
“With roughly 240 million iPhones in the window of an upgrade opportunity globally now at play for iPhone 15 and Services re-accelerating into FY24, we view this as the golden opportunity to own Apple for the next year,” emphasized Ives in a research note on Sunday.
Implications for Apple’s Target Price
Ives has consequently raised his target price for Apple shares to $250 from $240, maintaining an Outperform rating on the stock.
According to a survey conducted by FactSet, Ives now holds the distinction of being the most bullish Apple analyst on Wall Street, as the average target for the stock stands at $197.30.
Widespread Optimism on Apple’s Potential
However, Ives is not alone in his growing optimism towards Apple. Morgan Stanley analysts also increased their target price for the stock last week.