Wedbush lifts Apple price target

Wedbush noted that it’s seeing no major unit cuts from suppliers in Asia around iPhone production yet, which is a good sign that shows a steady demand curve on the flagship iPhone 14 Pro in March/June and goes against the common negative investor sentiment on Apple - and broader tech - in this "Fed/Powell-driven narrative".

It said Apple is gaining market share in the China region, with US/Europe demand holding up well and estimated that roughly 25% of the current iPhone installed base has not upgraded their iPhone in four years+.

"With the highly anticipated anniversary edition iPhone 15 set to be launched in the September timeframe the baton handoff from iPhone 14 to iPhone 15 looks to be a steadier transition than some other peak to valley iPhone cycles of the past," Wedbush said.

"We also believe ASPs are bumping up towards a roughly $900 ASP on iPhones which is a noteworthy trend heading into the next iPhone cycle. We also believe Street estimates are already baking in a shaky macro which gives Cook & Co. a better set-up into the next few quarters."

Wedbush also said there are a handful of new announcements from Apple that could be noteworthy and move the needle on the name over the coming months. These include the Apple Glass-AR/VR headset launch by the summer; more services bundling options; and some new hardware launches on the Mac product line in 2023.

"The golden installed base of Apple is creating more stability in this uncertain macro and remains key to our bullish thesis," Wedbush said.

At 1540 GMT, the shares were up 1% at $153.11.