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Piper Sandler has raised its Apple price target by $ 25 to $ 200 due to its portfolio of hardware and services heading into 2022.
In a note to investors seen by AppleInsider, says senior Piper Sandler analyst Harsh Kumar that investors should look at Apple as a “place to hide” in the current broader technology environment. This is due to the current momentum of hardware and services, as well as potential expansion points.
Kumar notes that Apple’s iPhone is still its most important asset. He continues to see momentum for the device into 2022 as 5G networks are expanded and operator subsidies increase the adoption of iOS devices. The analyst expects that Apple will see solid trends in China and that India will become a major market in the next few years.
On rumors that Apple is developing a first-party modem for its iPhones, Kumar said the move could save the company up to $ 5 billion in operating revenue as part of the 2023 iPhone cycle.
Kumar expects strong emerging trends across Apple’s services and wearables sectors to offset Mac and iPad weaknesses. Expectations for the Mac and iPad are already subdued, and Kumar notes that he is more cautious in 2022 as pandemic-driven growth stabilizes.
In the future, the analyst believes Apple’s potential foray into the automotive and healthcare sectors as “the next big growth markets for the company.” These two areas could be a catalyst driving the company’s market value to $ 4 trillion and more, he added.
All in all, Kumar says Apple “could be the place to hide in the technology market.”
“With a strong brand, solid free cash flow and margins, revenue growth / EPS and a shareholder return program, we believe
“Apple could be the place to be in technology when we face the broader market environment,” the analyst writes.
Kumar’s new $ 200 Apple 200-month price target is based on a 33x price-to-earnings multiple applied to Piper Sandler’s 2022 Apple earnings estimates. He says the new higher price target multiple reflects the company’s “confidence in the 2022 dynamics and ‘escape to safety’ in the current market environment.”