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Apple shares are below the all-time high of $ 136.69, reached on December 28, 2020.
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shares are rising as investors pile into megacap technology stocks ahead of the next wave of earnings reports for the December quarter. Apple will report the results on Wednesday, January 27 and street expectations will rise more and more, leaving its shares just a few points below the all-time highs.
Morgan Stanley analyst Katy Huberty on Thursday reiterated its rating of overweight in Apple shares and raised its price target from $ 144 to $ 152. She writes that, according to her checks, Apple experienced strength in its product and service portfolio during the quarter, driven by the adoption of iPhone 5G, the trend to work and learn from home, and sustained commitment to the App Store.
“We are buyers ahead of what we expect to be a record record for the December quarter,” Huberty writes in a research note. “Our recent conversations suggest that investors expect Apple to post solid, but not fantastic, results for the December quarter. We disagree and believe that Apple is likely to report quarterly revenue and quarterly earnings records.”
Huberty expects double-digit revenue growth in all revenue segments, with “biased risks on the rise” for iPhone, Mac and Services. Its revenue estimate for the quarter is $ 108.2 billion, well above the consensus of $ 102.6 billion. She sees profits for the December quarter of $ 1.50 per share, above the street at $ 1.40. (Note that the company did not provide any guidance for this quarter, citing the uncertainty associated with the pandemic).
“We expect the strength of demand to continue and our tax revenue for 2021 and EPS estimates to be 5% above consensus,” he writes. “Since the positioning in the quarter is silenced after the rotation of high-quality stocks in recent months, we expect strong follow-up to subsequent gains.”
Huberty believes the iPhone 12 was the launch of Apple’s most successful product in the last five years. It expects 78 million iPhones shipped in the quarter at an average selling price of $ 825, up 14% in revenue to $ 63.9 billion, double the growth rate the street consensus currently predicts for iPhone revenue. And he expects the momentum in iPhones to continue until 2021. He notes that Taiwanese partners in Apple’s supply chain have had three consecutive months of accelerating sales growth from one year to the next. , according to her, indicates a strong sale of iPhone in the coming quarters.
DA Davidson analyst Tom Forte also reiterated his rating of buying the shares, noting that the shares look “delicious,” even though it has exceeded its $ 133 price target. (He says his target is “under review” pending next week’s earnings report.) Forte also has estimates above the consensus for the quarter: it sees $ 106.2 billion in sales, with profits of 1 , $ 52 per share. “We believe Apple’s first line of smartphones in 5G networks is better positioned than investors who fully appreciate it,” he writes in a research note.
Monness Crespi Hardt analyst Brian White also repeats Buy’s rating, keeping the $ 144 price target. White’s estimates predict sales of $ 105.3 billion and profits of $ 1.47 per share. “The strength and linearity of this economic recovery continues to be a joke; however, we believe that Apple’s strong balance sheet, iconic brand, fast-growing service business, line of innovations, and tough stance on personal privacy will allow the company to emerge stronger from this crisis. “, he writes.
Shares of Apple have risen 3.1% to $ 136.10 in the recent trading. Shares have risen more than 6% in the first two days of the Biden administration, increasing its market capitalization during this short period by $ 133 billion. The shares are below the all-time high of $ 136.69, reached on December 28, 2020, as well as their intraday record high of $ 138.79, which touched on December 29. Apple shares have a market valuation of $ 2.278 trillion, and Apple remains the most valuable company in the world.
Write to Eric J. Savitz to [email protected]