(CercleFinance.com) – Wedbush reiterates its Outperformance recommendation and its price target of $200 on Apple shares.
‘The transfer of production to China is underway’, notes Wedbush for whom the current ‘Chinese quagmire’ and the policy of zero covid, has been ‘an absolute disaster’ for production ‘and is now at the origin of iPhone shortages of 10 to 15 million units’.
While exiting China won’t be easy and will come with obvious logistical and infrastructure hurdles, Wedbush believes that by 2025/2026, ‘and if Apple acts aggressively, more than 50% of iPhone production could come from India and Vietnam’.
By then, the Christmas shortage will be over. ‘We expect around 10-15 million iPhones (and potentially more) to go from the December quarter to the March quarter as supply begins to recover over the next few weeks,’ the analyst continues before to conclude: ‘Our bullish, demand-driven thesis remains firm. ‘
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