Although the shares of Apple Inc. fall despite a profit report, many analysts rejoice in the company’s future.
The smartphone giant posted $ 1.68 per share in revenue of $ 111.4 billion on Wednesday afternoon, both record numbers that came long before the consensus forecast. The company’s iPhone business alone earned holiday quarter revenue that was $ 6 billion ahead of the consensus vision.
After the strong report, investors wonder if Apple AAPL,
it can maintain its momentum, which chief executive Tim Cook addressed in response to a question about the company’s revenue. Cook argued that Apple still has considerable opportunities for organic growth derived from newer products such as portable products, emerging markets, business sales and more.
Appenheimer analyst Andrew Uerkwitz wrote positively about Apple’s potential in more traditional product categories.
“We believe that Mac (a high single-digit percentage) and iPhone (low percentage of teens) are the ones that have the most to gain, driven by the adoption of Apple Silicon and 5G, respectively,” he wrote. , referring to Apple’s custom M1 chip that is gradually rolling into its Mac line. “We expect the significant performance / energy efficiency benefits demonstrated by M1 (first generation only) over major competitors and closer integration between Mac and iOS devices to revitalize Mac growth and convince more users to switch from Windows PC to Mac “.
It has a score above the rating and a target price of $ 160.
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Jefferies analyst Kyle McNealy wrote about an “impressive neighborhood with more to come,” as Apple is still in the “first steps” of selling 5G devices. It is optimistic about “a massive installed base inherited in China that needs upgrades,” as well as a weakened Huawei due to U.S. export restrictions. The iPhone’s strong cycle could also continue to be a catalyst for more portable services and revenue, he said.
McNealy values the shares to buy with a target price of $ 160.
Raymond James analyst Chris Caso also suggested that this latest report could be the start of a strong journey for the iPhone in a note titled “We have the 5G cycle we were looking for, we don’t think it’s over “. He wrote that Apple not only saw higher December quarter sales than expected, but also saw strong margins stemming from a larger combination of more expensive devices.
“Although Apple did this cycle, we have long considered it a two-year 5G cycle, with better overall 5G coverage that provides a greater incentive for upgrades, along with what we hope will be a new form factor, ”he wrote, while maintaining a higher rating than its prices and raising its 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 surprising” was Apple’s revelation that the iPhone 12 Pro models sold “especially well” in the last quarter, despite some economic pressures. derived from the pandemic.
He sees tailwinds for Apple for much of the current fiscal year, as remote work trends generate more technology purchases. “Ironically, even though some stores are closed, Apple appears to have been a big beneficiary of the reallocation of consumer dollars during the pandemic,” he wrote. “That said, we’re concerned that the strength of an iPhone update cycle and the pandemic may wane during AF22, amid increasingly difficult year-over-year comparisons for the company.”
It has a stock market valuation and raised its target price to $ 132 from $ 120.
Shares of Apple have gained 27% in the past three months, as the DIA Jones Industrial Average DJIA,
has risen 16%.