JP Morgan expects Apple’s Sept. 15 event to drive upside for AAPL due to an Apple Watch launch, and a possible iPhone announcement.
In a note to investors seen by AppleInsider, JP Morgan analyst Samik Chatterjee reiterates that AAPL still has room to grow despite its currently rich valuation.
Heading into the Sept. 15 launch event, Chatterjee said that current share price weakness could set up the event to “buck the historical sentiment of ‘sell-the-news.'”
“Apple has talked about a delay of a few weeks for iPhones relative to its typical shipping schedule on the last earnings call; however, press reports … indicate moderating delays and manufacturing starting in mid-September, which should position the company to ship some iPhone SKUs in mid-October,” the analyst wrote.
If the event includes an iPhone announcement, Chatterjee said that it could surprise more materially on the “modest magnitude of delays.” Combined with reports of iPhone production kicking off in mid-September, the analyst forecasts that Apple could be in a position to ship certain iPhone models by mid-October.
“Hence, do not rule out the possibility of a combined launch announcement for Watch, iPad and iPhone on September 15,” he wrote.
At the event itself, Chatterjee expects a new Apple Watch model, which could drive adoption by first-time buyers and drive upside for Apple Wearables. He predicts a Services bundle.
For the “iPhone 12” lineup, Chatterjee maintains that Apple will release a 5.4-inch model, two 6.1-inch models, and a 6.7-inch model. He expects the two higher-end devices to sport mmWave, while the lower-end 5.4-inch and 6.1-inch devices will include low-band 5G.
Chatterjee is maintaining his 12-month AAPL price target of $150, based on a earnings-per-share estimate of $4.96 and a blended price-to-earnings multiple of 30x.
Shares of AAPL were trading at $117.63 on Wednesday, up 4.3% in intra-day trading.