Here's Why Wells Fargo Bumped Up Apple's Price Target By 24%

• Wells Fargo analyst Aaron Rakers raised the price target on Apple Inc (NASDAQ: AAPL) to $205 from $165 and reiterated an Overweight rating on the shares ahead of Apple's earnings on January 27. The price target implies an upside of 24.6%.

• Rakers increased Q1 revenue/EPS estimates to $117.8 billion/ $1.85 from $116.4 billion/$1.83.

• Related Content: Read Why Deutsche Bank Remains Bullish On Apple; Bumps Up Price Target BY 14%

• Rakers expects a focus on any commentary supportive of a belief that the supply chain is improving, continued confidence in strong end-user demand across the portfolio, as well as services/subscriptions momentum.

• He thinks the investment case for Apple has more to do with the company's monetization of the installed base through an expanded portfolio of products and services like AR/VR and auto rather than the near-term setup.

• Price Action: AAPL shares traded lower by 0.69% at $163.42 in the premarket session on the last check Friday.

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