Wedbush named Apple one of its"best ideas" stocks after recent selling set up a"great entry point."
Investors gearing up for a swift economic rebound have recently dumped growth stocks for riskier plays. The broad rotation to value stocks has dragged on tech mega-caps and sparked wild shifts between heavy selling and sudden dip-buying. While the Nasdaq composite notched a massive 3.7% gain on Tuesday, the biggest tech stocks still boast year-to-date losses., Wedbush analyst Dan Ives said in a note.
Wedbush reiterated its"outperform" rating with a $175 price target. The firm also holds a bull-case target of $225, which implies an 86% surge from Tuesday's closing level. The bullish estimate is partially fueled by expectations for millions of current iPhone owners to upgrade their phones throughout the year. Some 350 million of the 950 million iPhones worldwide are due for an upgrade, according to Wedbush. The dynamic stands to prop up demand into the fall, Ives said.
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