Apple: Wedbush cheers potential car deal with Hyundai

(CercleFinance.com) - Wedbush Securities maintains its "outperform" rating on Apple, sticking to its 175-dollar target price for the shares, as a deal with South Korean carmaker Hyundai appears on the horizon.


In a research note, the US broker said that CNBC reports that Apple and Hyundai-Kia are pushing closer to a deal on Apple Car, the tech giant's planned branded autonomous electric vehicle.

The car - to be manufactured in collaboration with Hyundai - is tentatively scheduled to begin production in 2024, Wedbush said.

In the report, the broker said it assigns a 35%-40% chance of Apple unveiling its own standalone car by 2024, given the many challenges it will have to face in auto production, battery technology, financial implications, and regulatory hurdles.

However, if Apple enters the EV race, the move could add over 30 dollars per share, and revive the Apple growth story over the next few years given the golden age of EV transformation that is on the horizon.

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