A Wall Street analyst suggested Monday that Apple (AAPL) investors have declared the iPhone 11 a success and already are turning their attention to the company's 2020 iPhones. Apple stock rose on the news.
XNomura Instinet analyst Jeffrey Kvaal reiterated his neutral rating on Apple stock but raised his price target to 205 from 185. Apple stock climbed a fraction to 227.06 on the stock market today.
Apple stock is trading just below its all-time high of 233.47, reached in October 2018.
"Solid demand for the iPhone 11 mitigates risk of a fiscal Q1 pothole," Kvaal said in a report to clients. "Investor focus may now shift to the 2020 iPhone 12 5G refresh."
Shipment times for iPhone 11 orders imply that demand for the 13th-generation handsets "modestly exceeds" that of the 2018 models, Kvaal said.
Also, checks with sources in the Asian supply chain "reflect solid demand, not tight supply," he said. Apple began selling its iPhone 11 handsets on Sept. 20.
Coming In 2020: 5G iPhones, New SE Model
Investors are looking to the 5G iPhones coming late next year to drive upgrades among iPhone owners, Kvaal said. Wireless carriers are likely to be more promotional with the 5G iPhones to get users to switch to higher-priced 5G service plans, he said.
Meanwhile, Apple is preparing to release a new version of its lower-cost iPhone SE in early 2020, TF Securities analyst Ming-Chi Kuo said Sunday.
Kuo expects Apple to launch the iPhone SE 2 in the first quarter, according to 9to5Mac.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor companies.
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