Apple stock has 30% upside in the next 12 months, says Deutsche Bank

DB says Apple's store traffic is around 40-50% of pre-pandemic levels.

What you need to know

Deutsche Bank says they see a 30% upside in Apple stock over the next 12 months.
Sidney Ho says that 5G smartphones like iPhone 12 haven't significantly changed the length of smartphone ownership.
The report also says Apple store traffic is around 40-50% of pre-pandemic levels.

A new report says that Deutsche Bank expects a 30% upside in Apple's share price over the next 12 months.

Deutsche Bank analyst Sidney Ho set out to find how the pandemic has affected Apple (AAPL), and particularly its flagship product – the iPhone...

According to Ho, the introduction of 5G into the iPhone 12, one of the best iPhones in recent memory, does not seem to have "significantly changed" the length of smartphone ownership. Ho does however expect the refresh cycle will accelerate once there is more 5G infrastructure.

According to the report, 57% of current iPhone users plan to get the latest model with their next purchase, just less than the 59% from December 2019, with most favoring the mid-range 128GB storage option.

Ho says that talk of an Apple Car doesn't seem to have many heads turning, with only 33% of customers surveyed interested and 68% confirming they wouldn't buy a first-generation model.

When it comes to the pandemic, Ho says Apple store traffic "bottomed out in the spring of 2020", but has since improved and is now at around "40-50% of the volume seen pre-pandemic."

Combined, Ho gave a bullish target share price of $160, up on the most recent close of $123.99. Ho also says that investors should be looking at an upside of around 30% on any investment returns over the next 12 months.

As the report notes, most analysts feel the same way:

All in all, most on the Street are backing Apple's continued success; Based on 19 Buys vs. 5 Holds and 2 Sells, the analyst consensus rates the stock a Moderate Buy. The 12-month forecast is for gains of 21%, given the average price target currently stands at $150.25.

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