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We are now less than a month away from an interesting earnings report in December
Apple.
Investors will get their first look at hard-on-demand numbers for both the new iPhone 12 and Mac laptops powered by Apple-designed processors. Apple (ticker: AAPL) will be pushed for data on how the recent round of Apple retail stores has impacted sales. And the Street will want to see if Apple starts issuing financial guidelines, a practice that it postponed throughout the 2020 calendar due to the impact of the pandemic. (The date of the employment report has not been announced, but it is likely to be correct at the end of January.)
Starting on what looks like a deluge of earnings forecast notes, two Apple analysts on Tuesday looked ahead and raised their target prices for Apple shares, with both noting strong demand for a new hotline. iPhone 12.
Canaccord T. analyst Michael Walkley restated its Buy rate, lowering its target price to $ 150 from $ 145, citing signs of strong demand for the iPhone 12 lineup. “Apple continues to demonstrate the strength of its product ecosystem, and we expect continued strong digital growth for Macs, iPads and services, ”he writes. “While we expected iPhone sales to return to growth year on year [fiscal first quarter ended Dec. 31] despite the delayed and discontinued iPhone 12 product compared to last year’s strong iPhone 11 release, we expect iPhone sales to reach double-digit growth despite the relatively difficult. ”
Walkley sees reasons for Apple shares to expand their strong rally in 2020. “With the 5G upgrade cycle likely to benefit in 2021, other hardware divisions are becoming two-digit and the mix movement continues to grow. To fringe services, we believe share prices are strong. for long-term investors, ”he writes.
Credit Suisse analyst Matthew Cabral has long been an Apple spy, and maintains a Neutral rating on the stock. But on Tuesday it raised its price target to $ 120 from $ 106, announcing a stronger-than-expected consumer choice for the iPhone 12 Pro and iPhone 12 Pro Max, the two higher-end versions of the new phone line.
It is noteworthy that waiting times for the Pro 12 are still more than two weeks more than two months after launch, while the iPhone 11 Pro application was in balance after about six weeks. That translates to better-than-expected average retail prices – and higher-than-expected revenue.
Cabral says it is still bullish on 5G for leading a long-term update move, although it is still more conservative for the short term, citing limited 5G coverage and a “lack of killer app” to ‘need 5G. He finds that the current valuation of the stock, at 33 times the calendar year 2021 estimates, “leaves very little room for error. ”
Apple shares are up 1.5%, at $ 131.29, in recent trading. The
S&P 500
it is up 0.9%.
Write to Eric J. Savitz at [email protected]