In a research report published today, Canaccord Genuity analyst Michael Walkley maintained a Buy rating on Apple (NASDAQ:AAPL) and raised the price target to $145 (from $135), which implies an upside of 22% from current levels.
Walkley explained, “We attempt to demonstrate just how dominant Apple’s December quarter iPhone sales were relative to the global smartphone market. In fact, we believe Apple’s strong December quarter results and guidance are consistent with our surveys and analysis indicating a strong iPhone 6 upgrade cycle should continue through C’15 driven by two primary reasons. First, given our estimate only 15% of the iPhone installed base has upgraded to the iPhone 6 devices, we anticipate continued very strong replacement sales to existing iPhone consumers. Second, we anticipate further high-end smartphone market share gains for the larger screen iPhone 6 devices as our surveys indicate a greater mix of Android smartphone consumers are switching to the iPhone 6 smartphones than in the iPhone 5 series launches. We believe these trends should grow Apple’s iPhone installed base and bodes well for future strong iPhone replacement sales, earnings, and cash flow generation.”