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Evercore ISI analyst Amit Daryanani raised his target price on Apple stock to $ 145 from $ 135.
Mladen Antonov / AFP via Getty Images
Wall Street is becoming increasingly optimistic
Appleof
upcoming income report.
Earlier this week, I took note of some analyst notes regarding Apple’s December quarter financial results (ticker: AAPL) and the lifting of their price estimates and targets. Late Wednesday, Evercore ISI analyst Amit Daryanani stepped in, repeating his outperformance rating while raising his target price on the stock to $ 145 from $ 135.
As with the calls earlier in the week from Canaccord and
Swiss credit,
Daryanani has raised his expectations for the quarter, which are expected to be released in the last week of January. And like his peers, he cited strong early demand for high-end versions of the iPhone 12.
By upping the estimates, Daryanani points to a combination of better-than-expected unit demand and higher-than-expected average selling prices, as consumer demand tends towards the high-end Pro and Pro Max versions of the new phone line. He also notes “better growth in services”, given a growth of over 30% in downloads from the App Store.
“It is important to note that not only are we seeing demand remaining robust in [the December quarter] but also expect the rise to hold [the March quarter]“Given the extended delivery times for the iPhone 12 Pro and, to a lesser extent, for the Pro Max,” he writes.
“The iPhone Pro has now shipped for two and a half months and our analysis suggests that the delivery time remains high in every country we track except the US,” writes Daryanani. He says Apple offers same-day delivery on the iPhone Pro in the US with special courier delivery costing an additional $ 10, but standard delivery still requires a 21-day wait, a modest improvement over. at the 33 day wait at the start. of December.
He notes that in China, delivery times for the 12 Pro have dropped from 23 days to 16 days, but remains the longest 10-week delivery time after launch for an iPhone in history. He notes that the base iPhone 12 and the Mini 12 have shorter delivery times in all regions, “which could indicate a strong combination of more expensive iPhone 12 Pro.”
The raised Evercore analyst is looking for $ 104 billion in revenue and $ 1.43 per share in earnings for the quarter, above Street’s consensus of $ 102 billion and $ 1.40 per share. action. It sees 80 million iPhone units for the quarter, with an average selling price of $ 775.
Apple shares rose 1.2%, to $ 128.17, in most recent trading. the
S&P 500
was up 0.9%.
Write to Eric J. Savitz at [email protected]
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