Evercore ISI analyst Amit daryanani discussed in a research paper on Wednesday whether it makes sense to hold Apple shares before the new iPhone goes on sale. The conclusion is positive and continues to maintain Apple’s outperformance rating and raise its target price from $440 to $460.
daryanani wrote in the research paper: “since the iPhone is expected to be released in the next three months or so, we think it is instructive to review the relative stock price performance of the iPhone before and after the launch. Looking back on past iPhone releases, Apple’s share price performed best on average 180 days before the launch of the new iPhone, and the stock price in the first 90 days also performed well with lower volatility. 30 days and 90 days after the release of the new machine, the average performance was not as good as the market
analysts pointed out that the relative performance of stock prices seemed to be related at least in part to the strength of the release cycle, “iPhone 6, X and 11 performed well in most of the time before and after the launch.”
his core conclusion is that Apple stock has always been a good investment before the launch of the new iPhone, and evercore thinks there is no reason to change that conclusion now.
he pointed out that the best time to hold Apple’s stock was within 180 days before the launch of the new iPhone, while the stock performed poorly on average in the 30 and 90 days after the launch. The average return on the new iPhone was 11.3% 90 days before its launch, suggesting that buying Apple shares now is logical.