Apple Stock Soars Ahead of iPhone Launch as Foldable Device Looms
Apple's stock price has been on an upward trend over the past year, rising by roughly 35% to $314.58 per share as of August 27th. The tech giant is set to unveil its new iPhone lineup and potentially its first-ever foldable device at a product event scheduled for September 9th.
The upcoming launch has sparked both bull and bear cases among analysts, with some seeing it as a catalyst for further growth and others warning of overvaluation. InvestingPro's Fair Value model puts the stock's intrinsic value at $249.19, implying a -20.8% downside from its current price.
However, Rothschild Redburn has upgraded Apple to Buy with a target price of $400, predicting that iPhone sales will compound at a 12% five-year CAGR fueled by the foldable opportunity. Technical indicators are also pointing to momentum, with every timeframe registering a Strong Buy signal.
The 'sell-the-news' risk is another factor to consider, as Apple's stock has historically rallied into iPhone launches before consolidating or pulling back afterwards. Analysts at Barclays remain skeptical about foldable volumes, while Jefferies questions the sustainability of premium pricing.