Although the shares of Apple Inc. decline despite an explosive earnings report, many analysts are enjoying the future of the company.
The smartphone giant posted a $ 1.68 billion revenue share of $ 111.4 billion on Wednesday afternoon, both record highs that came well ahead of the consensus forecast. The company’s iPhone business alone made quarterly holiday revenue, $ 6 billion ahead of consensus.
Following the strong report, investors are wondering if Apple AAPL,
he can sustain his momentum, something that was addressed to CEO Tim Cook in response to a question about the company’s earnings calls. Cook argued that Apple still has considerable organic growth opportunities stemming from newer products, such as wearables, emerging markets, business sales and more.
Oppenheimer analyst Andrew Uerkwitz wrote positively about Apple’s potential in more common product categories.
“We believe that Mac (high single-digit share) and iPhone (low share for teens) have the most to gain, driven by the adoption of Apple Silicon and 5G, respectively,” he wrote, referring to the custom M1 chip of Apple, which is gradually running on the Mac range. “We expect the significant performance / energy efficiency advantages that M1 has demonstrated (only the first generation!) Compared to regular competitors and closer integration between Mac and iOS devices to revive Mac growth and convince more users to switch from Windows PC to Mac. ”
It has a higher performance rating and a target price of $ 160 per stock.
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Jefferies analyst Kyle McNealy wrote of an “impressive quarter with more revenue,” as Apple is still in the “first half” of selling 5G devices. He is optimistic about “a legacy base installed in China that needs upgrades”, as well as a weakened Huawei due to US export restrictions. The iPhone’s powerful cycle could continue to be a catalyst for more wearable services and revenue, he said.
McNealy values the stock on a target price of $ 160.
Raymond James analyst Chris Caso also suggested that the latest report could be the start of a strong iPhone journey in a note entitled “We got the 5G cycle we were looking for, we don’t think it’s over.” He wrote that Apple not only recorded higher sales in the December quarter than expected, but also saw strong margins resulting from a larger mix of more expensive devices.
“While Apple delivered this cycle, we have long considered this to be a two-year 5G cycle with better overall 5G coverage that provides a greater incentive for upgrades, along with what we expect it to be. a new form factor, ”he wrote, while maintaining a better rating and raising his price target to $ 160 from $ 150. “We expect the services to benefit from improved unit volume (which is added to the installed base), along with new service offerings.”
Bernstein analyst Toni Sacconaghi wrote that “the most striking” was Apple’s revelation that the iPhone 12 Pro models sold “particularly well” in the last quarter, despite economic pressures resulting from the pandemic.
He sees the back wind for Apple for most of the current fiscal year, as remote trends lead to more technology acquisitions. “Ironically, despite the closure of some retail outlets, Apple appears to have been a strong beneficiary of consumer spending reallocated during the pandemic,” he wrote. “That being said, we are concerned that the power of an iPhone and pandemic update cycle could decline in fiscal year 22, amid increasingly difficult comparisons for the company.”
It has a stock market performance rating and has raised its target price to $ 132 from $ 120.
Apple shares have gained 27% in the last three months, as DJIA Dow Jones Industrial Media,
increased by 16%.