Apple's stock has caught an under-the-radar bid over the past four weeks, and the momentum may be sticking around says JPMorgan (JPM) telecom and networking analyst Samik Chatterjee.
"The upside pressure on volumes for the iPhone 12 series, historical outperformance in the July-September time period heading into launch event, and further catalysts in relation to outperformance for iPhone 13 volumes relative to lowered investor expectations implies a very attractive set up for the shares in the second half of the year and thus expect Apple shares to outperform the broader market materially in 2H21," Chatterjee wrote in a new research note on Tuesday.
Chatterjee also mentioned, "The historical track record for Apple shares heading into the September iPhone launch event has been to outperform the broader market consistently each year. While the magnitude of the outperformance in July-September is generally driven by investor expectations heading into the next iPhone cycle, we believe the setup is attractive and Apple shares are positioned for a significant outperformance over the next 2-3 months given the 1H underperformance as well as the near-term upside on volume expectations for iPhone 12 series from recent share gains, particularly in China."
Apple closed today at $144.47, continuing its latest growth. Wall Street Journal shows a high price target of Apple at $185.