Apple is still the top choice for investment bank JP Morgan Chase, which expects the company’s iPhone and service growth to crush investors’ expectations of a downturn in the market. In a note to investors, JP Morgan Chase analyst Samik Chatterjee outlined the bank’s ranking of the stocks under its coverage. The ranking is based on the themes that investors pay attention to, as well as certain company-specific driving factors.
For JPMorgan Chase, Apple still ranks first. Chatterjee said that Apple’s iPhone 13 sales may crush investors’ low expectations for this cycle. In addition, he expects service growth to remain strong-growth rates between 20% and 25%.
Chatterjee said investors have “limited preference” for Apple, Qualcomm and other 5G-related brands. However, the analyst maintained his super-high rating on Apple and said that it is still a top choice, on the grounds that this is “another record year for 5G equipment upgrades.”
Other companies in the JPMorgan Chase rankings include Dell at number two, Cisco at number three, and F5 Networks and Arista at number four and fifth. Qualcomm ranked tenth, it is the only addition to Apple’s top ten smartphone-related brands.
Chatterjee said that in the opposite direction, investor preferences are now shifting from 5G equipment companies to 5G infrastructure and network companies. However, Apple has the ability to exceed consensus forecasts. The analyst maintains his 12-month Apple target price of $180, which is based on a 30 times P/E ratio of JPMorgan Chase’s 2022 profit forecast of $6.12.
