Apple price targets raised on upside drivers, momentum

Citing the potential for upside revenue/earnings drivers and upcoming catalysts, JPMorgan raises its Apple (AAPL +2.0%) price target from $115 to $150 (adjusted for the 4:1 split) and maintains an Overweight rating. .

Analyst Samik Chatterjee expects further upside to the already increased 5G iPhone volume consensus led by a “compelling pricing strategy,” a slight revenue upside lifting EPS to a higher upside, and sustained pandemic-related work from home and enterprise tailwinds.

Chatterjee: “While the $2 trn market cap valuation in itself is a significant milestone, that AAPL shares crossed it in a year with significant COVID-19 disruption testifies to the recurringnature of not only its Services, but also its Products, such that investors are now willing to pay a Services-like premium on the entire earnings stream and a modest premium on account of expectations for further revenue/earnings upside.”

BofA analyst Wamsi Mohan maintains a Neutral rating and raises Apple’s PT from $117 to $140, citing the stock’s “unprecedented strong run of outperformance vs. the broader market.”

Mohan: “Analyzing the past few weeks of trading data suggests a strong inflow from retail investors, suggesting MOMO (momentum) is the strongest attributable factor. We believe the momentum can cut both ways especially given risk to Sep/Dec qtr estimates (particularly on high end iPhones) but also recognize that in the short term momentum can trump valuation.”

Here’s a look at Apple’s performance over the past year compared to the tech sector (NYSEARCA:XLK) and S&P 500:

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