JP Morgan analyst raises Apple stock price prediction: high expectations for iPhone 13 and 5G iPhone SE

JP Morgan investment bank has now raised its Apple price target, or its projection of a stock price, to $180 based on high expectations for the iPhone 13 series and a possible 5G-supporting iPhone SE release, reports Apple Insider. JP Morgan believes these phone releases will drive another record year for Apple.

JP Morgan has high expectations for Apple in fiscal 2022

JP Morgan lead analyst Samik Chatterjee has written in a note that he foresees a substantial upside (or potential increase in value) in regards to the consensus expectations for the 2022 fiscal year. The consensus expectations mean the average of predictions by analysts. This increase in stock value is estimated to be mainly due to the iPhone 13 series and a 5G-enabled iPhone SE.

Chatterjee now has increased his estimations for iPhone volume in 2022 to 246 million units. This pretty much means there will be another record year of Apple iPhone shipments, following this years' iPhone 12 supercycle.

Additionally, the analyst says these predictions are based on the rate of users who will need to upgrade their phone with the iPhone 13, in comparison with the same rate for the iPhone 12 series.

And on top of that, the analyst believes a higher number of devices with lower average selling prices (or ASP) could offset the numbers. An offset means to assume an opposite position in relation to an original opening position in the securities markets. Nevertheless, the launch of a 5G-enabled iPhone SE could provide an increase in the value of Apple's stock.

Based on these predictions and analysis, Chatterjee has raised his revenue and earnings-per-share expectations for the year 2022, which are now 2% and 7% higher than the current consensus (the average of predictions). He has also raised his 12-month Apple price target to $180, up from $175.

For those of you who don't know, a price target is a projection of a price that stocks may carry within the next 12 or 18 months, depending on the company's valuation and the analyst's predictions and estimations. This basically means Apple's stock price is estimated to grow and remain high for the next year.

iPhone 12 supercycle and the upcoming iPhone 13 and 5G iPhone SE

Yesterday, we reported on the rising popularity of iPhone models in China and the higher demand for the iPhone 12 models in the country, which also raises expectations for iPhone 13 shipments. It seems that, at least according to analysts, Apple may be able to continue the iPhone 12 supercycle with the iPhone 13 release as well.

The iPhone 12 seems to be repeating (and actually bettering) the history of the iPhone 6 supercycle, mostly due to the 5G support the current iPhone lineup supports. This is setting a trend of popularity for Apple that many analysts expect will continue on through 2021, and now, as we see from the JP Morgan analyst's prediction, may even go into fiscal 2022.

The iPhone 13 series is a highly-anticipated series that is expected to bring notable improvements from the 12 series. For example, the iPhone 13 Pro models are expected to rock the long-awaited 120Hz display refresh rate, dubbed Pro Motion, while the entire lineup is expected to sport bigger batteries and the more efficient A15 Bionic chip.

As for the iPhone SE, there are not many reports or rumors at this point. However, recent reports show that the 5G-enabled budget-friendly iPhone SE should come in the first half of 2022.

According to sources from DigiTimes, the 5G iPhone SE will be rocking the flagship-grade A15 Bionic chip, found currently in the iPhone 12 series, while some of its specs will remain loyal to its budget-friendly nature. Of course, reputable insiders have claimed it will come with 5G.

In terms of design, reports place it in a similar position to its predecessor with a Touch ID sensor and a physical home button, alongside the compact 4.7-inch display.