[ad_1]
Though Apple Inc. shares fall despite an explosive earnings report, many analysts are applauding what the future holds for the company.
The smartphone giant posted $ 1.68 per share on revenue of $ 111.4 billion on Wednesday afternoon, two record numbers well ahead of consensus forecasts. The company’s iPhone business alone generated revenue for the holiday quarter that was $ 6 billion ahead of consensus.
Following this strong report, investors wonder if Apple AAPL,
can keep up the momentum, which chief executive Tim Cook addressed in response to a question about the company’s earnings call. Cook argued that Apple still has significant organic growth opportunities stemming from newer products such as wearable devices, emerging markets, corporate sales and more.
Oppenheimer analyst Andrew Uerkwitz has written positively about Apple’s potential in more mainstream product categories.
“We believe that Mac (high single digit share) and iPhone (low share for teens) stand to gain the most, from the adoption of Apple Silicon and 5G, respectively,” he wrote. , referring to Apple’s custom M1 chip that it rolls over gradually. to its Mac range. “We expect the significant performance / energy efficiency advantages demonstrated by M1 (only the first generation!) Over traditional competitors and closer integration between Mac and iOS devices to jumpstart Mac growth and persuade more users to switch from a Windows PC to a Mac.
It has an outperformance rating and a target price of $ 160 on the stock.
Opinion: Apple justifies its huge valuation, while Tesla … not so much
Jefferies analyst Kyle McNealy wrote of an “impressive quarter with more to come” with Apple still “early in the race” to sell 5G devices. He is optimistic about “a massive legacy installed base in China in need of upgrades” as well as a weakened Huawei due to US export restrictions. The strong iPhone cycle could also continue to be a catalyst for more wearable-related services and revenue, he said.
McNealy rates the stock as a buy with a target price of $ 160.
Raymond James analyst Chris Caso also suggested that this latest report could be the start of a solid iPhone journey in a note titled “We have the 5G cycle we’ve been looking for, we don’t think it’s finished”. He wrote that Apple not only saw higher sales for the December quarter than expected, but also saw strong margins stemming from a greater mix of more expensive devices.
“Although Apple delivered this cycle, we have long considered it to be a two-year 5G cycle, with better global 5G coverage providing a greater incentive for upgrades, as well as what we we expect to be a new form factor, ”he writes while maintaining an outperformance rating and raising his price target from $ 150 to $ 160. “We expect services to benefit from improved unit volume (which adds to the installed base), as well as new service offerings.”
Bernstein analyst Toni Sacconaghi wrote that “the most striking” was Apple’s revelation that the iPhone 12 Pro models were selling “particularly well” in the last quarter, despite some economic pressures resulting from the pandemic.
He sees favorable winds for Apple for much of the current fiscal year as remote working trends drive more tech purchases. “Ironically, despite the closure of some stores, Apple appears to have been a big beneficiary of reallocated consumer spending during the pandemic,” he wrote. “That said, we are concerned that the strength of an iPhone upgrade cycle and the pandemic may wane in FY22, amid an increasingly difficult comparison environment for the company. “
It has a market performance rating on the stock and has increased its price target from $ 120 to $ 132.
Apple shares have advanced 27% in the past three months as the Dow Jones Industrial Average DJIA,
increased by 16%.
[ad_2]
Source link