Wedbush analyst Dan Ives has said that now would be a good time to buy AAPL, naming it as the best investment among tech stocks that could climb 25-30% by the year end.
Wedbush recommends three tech stocks that offer a “compelling risk/reward” ratio …
Business Insider reports:
Apple, Microsoft, and Nuance Communications are the top three tech buys heading into earnings season, according to Wedbush.
In a note to clients on Wednesday, analyst Dan Ives said that he believes tech stocks have “an upward 25%-30% move in the cards the rest of the year despite lingering rotation fears.”
The analyst laid out his top picks for a “compelling risk/reward” heading into earnings season. Apple, Microsoft, and Nuance Communications topped the list.
Ives highlighted Apple as his first top buy on Wednesday and said that the “supercycle thesis” for iPhone sales looks to be playing out.
The analyst still projects total fiscal 2021 iPhone sales in the 240-250M range, a number he first pitched in January and which is significantly higher than the Wall Street consensus of 220M.
The Microsoft recommendation is based on the company apparently winning cloud services business from Amazon.
The Redmond-based tech giant posted 50% growth in its Azure cloud business in the latest quarter compared to AWS’ 28% figure.
Cloud and AI tech also underlies the Nuance case.
Ives said Nuance Communications is set to benefit from more “hospital-wide deployments” of its cloud and AI technology which are “playing out and gaining further momentum based on our checks.”
Morgan Stanley issued an investment note yesterday that downgraded its price target for AAPL, though still classing it as a buy.
Apple Services revenue is still growing strongly, says Morgan Stanley, but the performance of some of its competitors shows that the market is a tough one. The bank has downgraded its price target for AAPL from $164 to $156.
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Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!