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'iPhone 12' a once in a decade opportunity for Apple, says Wedbush

Credit: Apple

Investment bank Wedbush believes Apple has plenty of room to grow, despite the company already hitting a $2 trillion milestone market valuation, largely due to the upcoming 5G "iPhone 12" lineup.

In a note to investors seen by AppleInsider, lead analyst Daniel Ives writes that shares of Apple still have "a lot of gasoline" left in the tank ahead of the "iPhone 12" launch expected later in 2020. Ives believes that roughly 350 million of the 950 million iPhones worldwide are in an upgrade window this "super cycle" — one that the analyst calls a "once in a decade" opportunity.

The analyst predicts that the "iPhone 12" lineup, expected to comprise four different models, will be Apple's most significant since the iPhone 6 in 2014. Despite softer consumer spending trends in the midst of coronavirus pandemic, Ives says that this cycle could be a defining chapter for Apple's growth.

Recent Wedbush supply chain checks in Asia also indicate a "discernible uptick" in demand forecasts for the next iPhones, something that could bode well ahead of the expected October launch.

Ives forecasts that only 5G models will be unveiled in the fall. Past rumors suggest that there will be 5.4-inch and 6.1-inch "iPhone 12" models, and 6.1-inch and 6.7-inch "iPhone 12 Pro" models. A 4G-only device, likely a successor to the iPhone SE, could debut in 2021, he added.

The analyst's 12-month price target and sum-of-the-parts valuation remain unchanged since the bank raised it to $515 on Aug. 10. A bull case price target remains $600.

Shares of AAPL were trading at $482.42 in intra-day trading on Friday, leaving the company with a market capitalization of $2.06 trillion.