Apple Inc. (NASDAQ: AAPL), TENCENT HOLDINGS ADR (TCEHY) – Apple analysts see ‘Once in A Decade’ Chance ahead of iPhone ‘Superbikes’

Even if Apple Inc.’s (NASDAQ: AAPL) stocks are soaring, Wall Street analysts see room for further upside.

The Apple Analysts: Wedbush analyst Daniel Ives maintained an Outperform rating for Apple shares with a $ 515 price target.

Morgan Stanley analyst Katy Huberty maintained an Overweight rating and increased the price target from $ 431 to $ 520.

Wedbush says Apple has left gas in the tank: With Apple shares hitting a $ 2 trillion market cap last week, the stock has “left a lot of gasoline in the tank” ahead of an impressive iPhone 12 “superbike,” Ives said on Friday.

Even as mild macroeconomic conditions and the COVID-19 pandemic weigh on consumer demand, the tech giant is in for a “once in a decade” opportunity, as 350 million of its 950 million iPhones worldwide are in the window of an upgrade -chant, the analyst said.

Ives will continue to see a lot of China’s power for Apple over the next six to nine months.

The range of services and the 5G iPhone models are key to growth going forward, the analyst said.

With reports over the weekend suggesting that U.S. companies, including Apple, will be allowed to keep up TENCENT HOLDING’s / ADR (Pink: TCEHY) WeChat app in China, investors’ fears about the ban being quelled, Ives said in a separate note released Monday.

A WeChat ban will not affect or disrupt Apple’s ecosystem in the key China market, the analyst said, adding that the WeChat ban will be limited to the US app.

See also: Apple shares hurt $ 400 after Tech Giant announces Record Quarter, Stock Split

Morgan Stanley On 5 questions from Apple investors: Given that Apple is now less dependent on the iPhone than before, Huberty said the company should be valued as a technology rather than a consumer platform.

Apple estimates with cash flow – the company does not report non-GAAP EPS – the shares earn a 25.5 times multiple, a 2% discount to tech platforms and a 10% discount to consumer platforms, the analyst said.

The supply is cheap against peers, implying that it has further room to turn, she said.

The App Store cannot be considered in isolation, Huberty said, referring to the risk that App Store cuts rates or gives Cupertino more flexibility in terms of iOS software and device integration.

Several industries have been created because of the App Store, the analyst said.

The loss of “Fortnite” is not important to Apple’s revenue base, she said.

On WeChat’s ban, Huberty said it does not believe Apple will be banned from giving access to Chinese citizens in China, and that if Apple has to deal with restrictions in China, it will likely have to lobby for an exception or exemption. ask.

On rumors that Apple is offering bundling services, Morgan Stanley said these will serve to accelerate the new growth of Apple subscribers and increase the revenue growth of Services in fiscal year 2021.

Between fiscal years 2021 and 2026, Apple has the potential to grow revenue by more than 8% per year and EPS by more than 11% annually, with conservative assumptions using and assuming minimal impact on new products or services, he said. Huberty.

AAPL Prize Action: At the last check, Apple shares traded slightly positive at $ 497.60.

Related Link: Why This Apple Analyst Says Fiscal 2021 Will Be ‘Big Year’ for iPhones

Photo courtesy of Apple.