Dan Ives raises Apple price target to highest on Wall Street, cites strong iPhone 17 demand

Wedbush analyst Dan Ives significantly raised Apple's price target to $310, the highest on Wall Street, citing robust demand for the new iPhone 17, with sales tracking 10-15% ahead of its predecessor. This optimistic outlook, representing a 26% upside, is driven by an anticipated "pent-up consumer upgrade cycle" and crucial expected growth reversal in the Chinese market, despite minor initial delays. Ives believes the market is underestimating the current iPhone cycle, aligning with the majority of analysts who also hold buy ratings on the stock.

Analysis

A highly bullish outlook on Apple (AAPL) has emerged from Wedbush, with analyst Dan Ives raising the price target to $310, a new Wall Street high that implies 26% upside from the last close. This optimism is anchored in robust early demand for the new iPhone 17, with sales reported to be tracking 10% to 15% ahead of the iPhone 16's initial performance. The core thesis is that the market is underestimating a significant "pent-up consumer upgrade cycle," supported by an estimate that 315 million out of 1.5 billion global iPhones have not been upgraded in over four years. This demand is further corroborated by supply chain checks in Asia, which suggest potential production increases of approximately 20% for base and pro models. China is identified as a pivotal market for this cycle's success, with expectations of a reversal in recent negative growth trends. While the iPhone Air's launch is currently delayed in China due to its eSim design, this is viewed as a temporary issue expected to be resolved within a month. This positive analyst sentiment aligns with the broader market, as LSEG data shows roughly two-thirds of analysts covering Apple maintain a buy rating, even as the stock remains down nearly 2% year-to-date.

Key Decisions for Investors

• Given the stock's 2% year-to-date underperformance, the strong early sales data for the iPhone 17 and the new Street-high price target present a potentially attractive entry point for investors with a bullish thesis on a major upgrade cycle.
• Investors should closely monitor developments in the Chinese market, as a successful reversal of negative growth trends is deemed a 'linchpin' for this cycle; the timely resolution of the iPhone Air's eSim-related delay is a key near-term catalyst to watch.
• While the outlook is positive, investors should track whether the reported 10-15% outperformance in iPhone 17 sales is sustained, as any deceleration could challenge the core thesis of a pent-up demand supercycle.