J.P. Morgan Securities Bullish on iPhone Volume

The brokerage firm set a $265 price target on AAPL

by Patrick Martin

Published on Sep 30, 2019 at 9:51 AM

Last week, analysts were bullish on Apple Inc. (NASDAQ:AAPL) because of the potential impact of 5G capabilities. Today, it's iPhones, after J.P. Morgan Securities set a December 2020 price target of $265, and a December 2019 goal of $243. The analyst in coverage also upped its iPhone volume forecasts for the fourth quarter of 2019 and first quarter of 2020.

The generous bull note has Apple stock up 1.3% to trade at $221.74 this morning. The shares spent most of the month consolidating below the $225 level, with their 20-day moving average cushioning any pullbacks. And while AAPL is still staring up at its year-over-year breakeven level, it's worth remembering that the security has gained 56% since its Jan. 3 annual low of $142.

The price target today is lofty compared to the rest of the analyst community, and signals that more could keep AAPL trending higher. The equity's consensus 12-month price target of $227.47 was just a slim 3.1% premium to Friday's closing perch of $218.82. Plus, 11 brokerages still rate Apple a tepid "hold."

AAPL options premiums are pricing attractively priced at the moment, from a volatility standpoint. Specifically, the stock's Schaeffer's Volatility Index (SVI) of 24% ranks in the 22 percentile of its 12-month range, meaning near-term options have priced in lower volatility expectations just 22% of the time in the past year.

Plus, the Dow stock sports a Schaeffer's Volatility Scorecard (SVS) of 95 (out of a possible 100). This means the security has consistently made bigger moves on the charts than its options premiums have priced in over the past year.

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.
Wall Street Roars Higher Amid Civil Unrest
Investors weighed a mixed bag of jobs data
AstraZeneca Stock Flat Despite COVID-19 Vaccine News
AstraZeneca saw a rise in capacity for its COVID-19 vaccine candidate
The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.