Apple stock is burning, but will it continue?

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Apple shares have received a solicited bid over the past four weeks, and the momentum may be in place, says JPMorgan (JPM) communications and networking analyst Samik Chatterjee.

“Upside pressure on iPhone 12 series volumes, historical outperformance in the July-September time period prior to the event launch, and other catalysts regarding iPhone 13 volume outperformance relative to lower investor expectations mean a very attractive setup for the second half of the year, and therefore we That Apple shares outperform the broader market materially in the second half of the year,”

The analyst reiterated its Outperform rating and raised the target price to $170 from $165. It also slightly raised its estimate for iPhone and iPad sizes.

Apple stock is up nearly 2% to $142 in today’s trading session.

Apple CEO, Tim Cook, Reuters / Robert Galbraith

Chatterjee is particularly bullish in the near term on Apple (AAPL) as it prepares for a typical barrage of new products launching this fall.

Chatterjee says, “The historical record of Apple stock heading to the iPhone launch event in September has consistently outperformed the broader market each year. While the volume of outperformance in July and September is generally driven by investor expectations heading into the next iPhone cycle, we believe that The setup is attractive and Apple shares are in a position to outperform significantly over the next 2-3 months given the weak hourly performance as well as the near-term upside to iPhone 12 series size expectations from recent stock gains, particularly in China.”

The bullish commentary sheds some much-needed light on Apple’s stock price movement in recent weeks, which has eluded many strategists who seem more interested in Fed volatility and volatility in meme stocks like AMC.

Apple shares are up 13% over the past month, bringing it close to an intraday high of $144 and the change in late April. The long performance that month puts it in full swing with a similar move into fellow tech giant Amazon. Apple and Amazon stocks are the best-performing FAANG stocks in the last month.

The story continues

iPhone shares are up 7.5% in the past six sessions. The advance marks the longest period of positive sessions for Apple since April, according to Bloomberg data.

“The cycle of technology upsurge in our opinion will continue to move upward in the second half of 2021/2022 due to the scarcity of names/growth winners in this forward-looking market in the wake of the Fourth Industrial Revolution taking place among enterprises/consumers. Our favorite big capital technology name To play in the 5G transformation cycle is Apple, as the 1-2 batch from its massive services business and iPhone product cycle translates into a $3 trillion market capitalization for Cupertino in 2022, says Dan Ives, technology analyst at Wedbush.

Ives has outperformed Apple stock with a price target of $185.

Brian Suzy is a traveling editor and broadcaster at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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