People wearing face masks look at a cellphone outside an Apple store during a May Day holiday in Shanghai on May 1, 2020.
Hector Retamal | AFP | Getty Images
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With Apple’s 4-for-1 stock split complete, Wall Street’s analysts are taking the opportunity to adjust both their price targets as well as update their clients on their fundamental outlook for the iPhone maker.
The consensus opinion was mostly upbeat, with JPMorgan noting that earnings drivers and catalysts (such as the upcoming launch of Apple’s 5G phone) should sustain investors appetite despite a “rich” valuation.
Bank of America echoed those thoughts, saying that momentum, more than fundamentals, should be able to carry the equity at least in the near term.
“Our conversations with institutional investors suggest that Fear Of Missing Out (FOMO) is not yet at work given the relatively quick rerating and concern that fundamentals can’t support continued upside,” BofA analyst Wamsi Mohan wrote. “Analyzing the past few weeks of trading data suggests a strong inflow from retail investors, suggesting MOMO (momentum) is the strongest attributable factor.”
Here’s what some of Wall Street’s top Apple analysts had to say about its stock split and the path for shares going forward.