Investment bank JPMorgan on Monday raised its price target on Apple stock, saying investors have set iPhone sales expectations too low for this year and next.
XIn a note to clients, JPMorgan analyst Samik Chatterjee said he expects investor sentiment on Apple (AAPL) to improve materially as it becomes clear that iPhone sales are outperforming "muted" expectations.
He modestly raised his forecasts for iPhone sales volumes for the current iPhone 11 series and next year's expected 5G iPhones.
Chatterjee reiterated his overweight rating on Apple stock. He raised his price target to 265 from 243.
Apple Stock Reclaims Buy Point
On the stock market today, Apple stock jumped 2.4% to 223.97. It retook a 221.47 buy point.
On Sept. 11, Apple stock broke out of a six-week flat base. But it fell out of the buy zone two days later. It has flirted with the buy zone for the past two weeks.
Also Monday, brokerage firm Mizuho Securities raised its forecast for iPhone 11 production. Longer wait times for delivery of iPhone 11 handsets vs. last year's new models "suggests stronger demand," Mizuho said in a report.
Last week, brokerage Jefferies initiated coverage of Apple stock with a buy rating and price target of 260. Jefferies analyst Kyle McNealy said investors are underestimating the company's services business and its positioning for 5G wireless.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor companies.
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