By Senad Karaahmetovic
A senior internet media analyst at Rosenblatt upgraded shares of Apple (NASDAQ:AAPL) to Buy from Neutral.
The analyst also raised the price target to $189 per share, up from the prior $160. The upgrade move comes on the same day when Bank of America analysts slashed their rating on Apple stock to Neutral (from Buy).
The analyst's upgrade call is based on Rosenblatt’s survey of over 1,100 U.S. adults, which showed “substantial interest in the company's new iPhone 14 Pro Max and Ultra watch.”
“We see reason to believe that consumers in other countries share this enthusiasm, prompting us to embrace more constructive near-term and long-term estimates,” the analyst told investors in the upgrade note.
29% of survey respondents said they already had or expect to buy an iPhone 14, including 33% of current iPhone owners and 18% of Android owners. In-line with recent reports of long wait times for higher-priced iPhone 14 models, Rosenblatt’s survey showed that 40% said they look to buy Pro Max while 26% opted for Pro.
“This implies a 75 million base of people in Apple's home country who want this device,” the analyst added.
Similarly, 23% of respondents said they already had or plan to buy one of these new Apple Watches over the next 12 months.
“Forty-seven percent of them want the Ultra, the top choice, followed by Series 8 with 32% and SE at 16%, suggestive of a meaningful northward Watch ASP opportunity,” the analyst further noted.
Reflecting on Bloomberg’s report about Apple winding down plans to increase iPhone 14 production, the analyst said the news should be seen in the context of “consumers' clear preference for the pricier models with higher ASPs.”
Apple shares are still down nearly 3% in pre-open Thursday.