New Apple Watch, Services cater to 'new normal,' Piper Sandler raises AAPL target to $130

In a note to investors seen by AppleInsider, analyst Harsh Kumar wrote that the bank was "extremely impressed" with Apple's event lineup and sees each product or service "addressing an individual's 'new normal' following the coronavirus pandemic."

The new Apple Watch Series 6 at a time when there is an increasing focus on health during the global health crisis, Kumar notes. He notes that the new models cements the Apple Watch as "one of the primary vital health sensors on the market today."

Kumar adds that Apple's focus on health partnerships, including a recently announced initiative in Singapore, could also bode well for the Apple Watch's wellness reputation.

Apple's lower-cost Apple Watch SE is also likely to be a major driver of adoption, and could also serve as an introductory model for kids, older users, or first-time buyers.

The analyst adds that Apple's 8th-generation iPad and iPad Air, both with significant updates to performance, creates an "enticing lineup" alongside the iPad Pro refresh that debuted earlier in the spring.

Apple's new services offerings, including Apple Fitness and the Apple One bundle, is also likely to bolster the segment. The Fitness+ service, Kumar writes, integrates with the Apple Watch and can be performed with limited equipment. During the global health crisis and a rise in at-home workout, Fitness+ bodes well as a workout solution and an "easy and cheap alternative for someone" looking to start a fitness routine.

"As the world continuously evolves, Apple remains at the forefront for new product and technology innovation," the analyst said.

Kumar is raising Piper Sandler's 12-month AAPL price target to $130, up from $113. That's based on a price target multiple of around 31x to 27x on an earnings-per-share estimate of $4.13.

Shares of Apple were trading at $114.53 on Wednesday morning, down 0.97% in intra-day trading.