What major analysts say about Apple shares before the big event

Published Tue, Sep 14 202110:19 AM EDTUpdated Tue, Sep 14 202112:48 PM EDT

Wall Street analysts are confident Apple will continue to ride the 5G wave when it debuts its latest product lineup on Tuesday afternoon . It's widely expected the tech giant will unveil the newest iterations of the iPhone, Apple Watch and AirPods. However, key questions remain mainly surrounding supply chain issues and pricing. Shares of the company are up just over 12% this year and even though the stock does not traditionally trade higher following the event , many analysts still see upside this year. Here's what analysts are saying about Apple's event on Tuesday afternoon: The success of the newest iPhone will ultimately be judged by demand, according to Morgan Stanley's Katy Huberty. "Investor expectations remain muted which creates a compelling setup into the fall should early iPhone 13 data points outperform expectations," she wrote. If the demand data exceeds expectations, shares could rerate higher "driven by both positive estimate revisions and multiple expansion," she added. JPMorgan's Samik Chatterjee said in a recent note to clients that the stock is better positioned than investors think. Chatterjee said he believes investors and consumers will feel more confident in the stock once pricing is better known. "Not only are we on track for a record year for iPhone shipments in 2021E, we also estimate we are on track for a record year for Upgraders," he said. The feeling was similar at investment firm Baird. "While upgrade cycles have lengthened, we expect the addition of 5G to continue to drive a healthy upgrade opportunity over the next several years," analyst Will Power said. However, Piper Sandler's Harsh Kumar said his recent survey checks show a surprising lack of interest in the iPhone 13. Still, the firm wasn't ready to give up on the stock or change its overweight rating. Kumar said he sees the iPhone 13 as "more of the same but 5G pushes demand." Bernstein's Toni Sacconaghi said the new Apple products were likely to be "evolutionary" and the firm was staying cautious. "Given its relatively high valuation vs. history, and our belief that consensus estimates may be too high for FY 22, we see current risk-reward on the AAPL as neutral to modestly negative," Sacconaghi said. Goldman Sachs - Neutral rating "As we prepare for Apple's likely announcement of new products this week we provide a few thoughts from the investor perspective. Although we don't expect major pricing changes we see iPhone and Watch pricing as the most interesting ﬁnancial takeaway from the event. In terms of products we expect an incremental iPhone update year with tweaks to things like notch size, camera and battery life. We expect a more meaningful update to Apple Watch with a form factor update as well as more material new features." Bernstein - Market perform rating &qu