Apple has a new Street-high price target — and the bullish analyst sees shares leaping 17% on 'massive' iPhone 12 demand

• Apple's biggest bull boosted his price target to $450 from $425 on Monday, implying a 17% leap from Friday's close.
• A faster-than-expected revival of the company's supply chain and and "massive pent up" demand should push shares higher through the next year, Dan Ives, analyst at Wedbush Securities, said.
• The tech giant's upcoming iPhone lineup is set to be the first with 5G capabilities.
• The collection will include four models, Ives said, and the rumored omission of earbuds and a charger from the box could create "cross-sell" opportunities for AirPods during the fall buying spree.
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Apple's biggest bull expects shares to ride a "5G super cycle" all the way to $450 each.

The tech giant is slated to reveal its latest iPhone in the fall and, with it, kickstart a new chapter of growth, Dan Ives, analyst at Wedbush Securities, said Monday. Demand steadily rebounded in China in June, and as other nations contain the coronavirus and lift lockdowns, the stage is set for "massive pent up" interest in the iPhone 12.

With prospects improving for the product's fall launch, Ives raised his price target to $450 from $425, implying a 17% jump from Friday's close. Shares could even rocket to $525 in the next 12 months in Ives' bull-case scenario.

"We believe during 2021 Apple will be the first $2 trillion valuation given the 5G tailwinds and services momentum potential over the coming years," the analyst wrote in a note to clients.

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Apple traded at $398.94 as of 11:35 a.m. ET Monday, up 37% year-to-date. The stock jumped as much as 4% through the session amid a broad market upswing.

The phone will be Apple's first with 5G capabilities and should spark a multi-year opportunity, Ives said. Apple's faster-than-expected supply chain restoration allows the company to move forward with what will likely be a four-phone lineup spanning 4G and 5G handsets. Ives expects some 5G versions to come in under $1,000 each, with some cost savings coming from the absence of earbuds or a charger in the phone's box.

Launching the iPhone 12 with such packaging is a win-win, the analyst said. Leaving earbuds out creates "more cross-sell opportunities for AirPods" and allows the company to keep phone prices stable in the still-expensive 5G market.

Roughly 350 million of Apple's 950 million iPhones worldwide are set for an upgrade in the fall. With a new range of phones spanning price points and 5G capability, the company is positioned for demand to spike over the next 12 to 18 months, Ives said.

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