Apple’s stock gains after Wall Street bull gets a little more bullish

Shares of Apple Inc. rose Wednesday after longtime bullish analyst Dan Ives at Wedbush raised his price target, citing signs that demand for iPhones in China has been growing.

The technology behemoth’s

stock gained 0.4% in premarket trading, after falling 1.5% on Tuesday to snap a three-day winning streak.

Ives said iPhone supply was steady in January and February, in contrast to the supply-constrained December quarter that resulted from issues related to China’s zero-COVID policies. And early indications in March suggest conditions continue to improve.

“Our Asia iPhone supply chain checks this week have been incrementally more positive, with a modest uptick in demand coming out of China for Apple with a clear demand rebound happening in this key region post December, despite the uncertain macro backdrop,” Ives wrote in a note to clients.

In Apple’s fiscal first quarter, which ended in December, iPhone revenue of $65.78 billion made up 56.1% of total revenue, and sales generated in China of $23.91 billion made up 20.4% of total revenue.

Ives said Apple is gaining market share in China and demand in the U.S. and Europe is holding up well. He estimates that about a quarter of current iPhone users have not upgraded their iPhones in more than four years, and he believes the new iPhone users added to Apple’s ecosystem over the past year will lead to a reacceleration of the company’s services business in the coming quarters.

Also read: Apple’s stock has 5 overlooked catalysts that will drive it higher, analyst says.

Ives reiterated the outperform rating he’s had on Apple for at least the past three years. He raised his stock-price target to $190 from $180, with the new target implying about 25% upside from Tuesday’s closing price of $151.60.

The new price target ties Ives with Evercore ISI’s Amit Daryanani for the second-highest target for Apple’s stock, according to FactSet data. The highest target on Wall Street is $195, which three analysts — Jefferies’ Kyle McNealy, Piper Sandler’s Harsh Kuman and TD Cowen’s Krish Sankar — have on the stock.

Of the 40 analysts surveyed by FactSet who cover Apple, 31 are bullish, seven are neutral and 2 are bearish. The average price target is $169.16.

Apple’s stock has climbed 6.3% over the past three months through Tuesday, while the Dow Jones Industrial Average

has slipped 2.7% and the technology-friendly Nasdaq Composite

has gained 4.1%.