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Apple stock set for huge move in 2020

  • Apple set a record for single-day sales on New Year’s Day
  • Stock can surge 50% higher, says top market analyst
  • More than half of surveyed analysts have “buy” ratings on Apple stock

Apple stock has travelled almost vertically higher since August last year, gaining more than 60% in less than five months. 

The stock price received a further boost yesterday after the company revealed that its App Store facilitated sales of $1.42 billion between Christmas Day and New Year’s Eve.

This year’s numbers represent an increase of 16% from the same period last year, with the biggest share of gains coming from New Year’s Day alone, when the tech giant generated $386 million, setting a record for single-day sales.

“We begin the new decade with incredible momentum and gratitude to our customers who have shown such enthusiasm for all of our Services, and we continue to celebrate the work of the world’s best creators, storytellers, journalists and developers,”

said Eddy Cue, Apple’s senior vice president of internet software and services.

Due to its immensely strong core business, the Apple stock recorded the best year since 2009. The most recent gains can be attributed to a strong performance of iPhone 11. 

We reported today that the sales of the iPhone in China shot up over 18% last month, signaling a better-than-expected performance from the tech giant in a market in which it has historically struggled to compete with local smartphone manufacturers. 

When it comes to 2020, many analysts believe that the Apple stock has plenty of room for growth in 2020 despite the phenomenal performance in 2019.

Having said so, Gene Munster, a former top Wall Street tech analyst, believes Apple stock can surge 50% higher in 2020. According to him, Apple’s business consistency is comparable to those of Microsoft, Google’s Alphabet and Facebook.

“I would just highlight that even though we don’t see those price targets moving up on Apple, I think there is a bigger trend towards a quality in multiples,” he noted, while adding that the tech giant has potential to move to $465 in 2020. 

However, there are also other opinions on how the stock may behave in 2020. Contrary to Munster, Deutsche Bank analysts believe that the Apple stock is overvalued at current levels. 

“Overall, with uncertainties still existing in the 2020 iPhone growth trajectory, macro risks with tariffs still unsettled (China yet to be fully resolved), and a valuation that reflects a lot of goodness in our view, we are unsure whether the fundamental outperformance can outstrip the high investor expectations for the stock in 2020,”  

analysts wrote.

Deutsche upgraded the stock target from $235 to $280, which is nearly 10% higher from the current levels. In total, 27 out of 48 analysts still rate Apple stock as “buy”, while the average price target is $274.55.

Summary

Apple continues to perform extremely well. The company has set new records in different sales categories, which fueled rally of the stock in the second half of 2019. The majority of analysts agree that Apple has further room for growth, including a 50% hike projections coming from a former top market analyst.

About the author

Dimitar Bogdanov
Dimitar Bogdanov
I have been a journalist for Invezz since 2012 and am one of the oldest on the team. My focus is on cryptocurrencies as well as general equity markets, although my experience is broad overall.

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