Apple to return high single digits next year on 5G iPhone demand, Piper Jaffray predicts

Tim Cook, CEO of Apple, speaks during an Apple special event at the Steve Jobs Theater in Cupertino, California, March 25, 2019.
Stephen Lam | Reuters

Early interest in the 5G iPhone is creating a "perfect storm" for Apple in 2020, Piper Jaffray said in a note on Friday.

The financial firm polled U.S. iPhone users and found strong interest in upgrading to a 5G iPhone, even if it costs $1200. Piper  kept its overweight rating on the stock and raised its price target to $305 per share from $290, representing an 8.9% upside from where the stock closed on Thursday.

Piper used just a 1% growth projection for iPhone sales in 2021 to create its price target, but said the 5G iPhone could be a major upgrade that causes that projection to be too low.