One of Wall Street’s best performing analysts is out with a confident note ahead of what should be a standout festive holiday season for Apple Inc. (NASDAQ:AAPL) and sales for an iPhone X that is showing off high demand.
Top analyst Michael Walkley at Canaccord did some survey work in North America on back of the launch of the tech titan’s iPhone X and says that “especially” if the company can step up its iPhone X supply game for the 256 GB models, this should translate for robust holiday sales.
Ahead of what a period that could generate 78.5 million iPhone unit sales for the iPhone machine, the analyst maintains a Buy rating on AAPL stock with a $195 price target, which represents a nearly 15% increase from where the stock is currently trading.
Walkley asserts, “We believe initial iPhone X demand is very strong with decreasing lead times indicating ramping production […] Samsung continues to dominate high-end Android sales in the North American market with its GS8/GS8+ and Note 8 portfolio, but the demand for Apple’s new products suggests ongoing share gains for Apple through year-end. Following solid September quarter iPhone sales consistent with seasonal trends, we estimate Apple captured 72% of industry profits, up from 68% in the June quarter, and we anticipate much stronger share during the lucrative December quarter. We believe strong sales and mix of the iPhone X will sustain strong gross margin dollars given the high price points and likely improving manufacturing efficiencies.”
As this tech titan closes out the year, the analyst anticipates Apple’s iPhone installed base could jump past 635 million, an “impressive” loyal user base that Walkley sees generating robust iPhone replacement sales and earnings as well as cash flow that can fuel sturdy capital returns down the line.
Michael Walkley has a very good TipRanks score with a 66% success rate and a high ranking of #54 out of 4,718 analysts. Walkley garners 18.5% in his yearly returns. When recommending AAPL, Walkley realizes 28.5% in average profits on the stock.
This tech darling is a Wall Street favorite, compelling more than just this top analyst’s confidence, with TipRanks analytics demonstrating AAPL as a Strong Buy. Out of 31 analysts polled by TipRanks in the last 3 months, 25 are bullish on Apple stock while 6 remain sidelined. With a return potential of 10%, the stock’s consensus target price stands at $187.30.