J.P. Morgan raised its price target on Apple’s (NASDAQ:AAPL) stock Monday, expecting the company’s shares will rise 21% as sales of its new line of iPhone are “stronger than muted expectations.”
"We are modestly raising our iPhone volume forecasts and expect investor sentiment on AAPL shares to improve materially given the firm’s ability to drive upward revision to volume expectations despite the 2019 product cycle largely considered to be a muted one," said one Morgan J.P. Morgan analyst.
J.P. Morgan raised its price target on Apple to $265 a share from $243 a share. The firm has an overweight rating on the stock.
J.P. Morgan forecasts one million more iPhone sales than it previously expected during the current quarter, plus three million more iPhone sales than expected in the final quarter of the calendar year.
"In addition to a raise in volume expectations for 2019 product cycle, we are also increasing calendar 2020/2021 volume expectations led by stronger adoption of 5G enabled iPhones expected to be launched in September 2020."
J.P. Morgan expects Apple will sell 198 million iPhones with 5G service in 2020 and 200 million in 2021.
Shares grew $2.84, or 1.3%, to $221.66
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