Apple has underperformed the S&P 500 this year, but that could change once the company launches all of its new products in the fall.
In a new note for investors seen by Business Insider, JPMorgan believes that Apple’s stock performance is set to change when the company announces the iPhone 13 in a few months. The bank has improved the target price for AAPL from $ 165 to $ 170, which would equate to a 21% increase in stock performance today.
The bank believes that several factors contribute to its prediction, including lower investor expectations for the company.
“Upward pressure on iPhone 12 series volumes, historical outperformance in the July-September period heading into the launch event, and other catalysts in relation to outperforming iPhone 13 volumes relative to lower investor expectations imply a very attractive setup for the stock in the second half of the year and therefore AAPL’s shares are expected to substantially outperform the broader market in 2H21. “
JPMorgan notes that Apple shares have commonly skyrocketed if the company exceeded investor expectations or if the company experienced a solid launch of a new iPhone.
“We see the iPhone 13 launch as more of the latter, similar to the iPhone 11 cycle, with a multi-year 5G tailwind for replacement rate and a larger installed base supporting a stronger volume run rate. per year relative to current investor expectations.
“Net net, after a period of limited interest and underperformance in stocks, we believe the tide is ready to turn [for Apple’s stock price].
The bank expects Apple to ship up to 226 million iPhones in fiscal 2022. That would be a big jump from other reports that expect shipments of 210 to 215 million units.
Apple is expected to announce the iPhone 13 this fall with some notable camera, display, and battery improvements. If you want even more battery in your iPhone, check out our list of the best battery cases for iPhone 12 2021.