Getting more optimistic about Wall Street
Upcoming earnings report.
Earlier this week, I looked at Apple’s (ticker: AAPL) December-quarter financial results and some analyst notes added to further its projections and price targets. Late Wednesday evening, Evercore ISI analyst Amit Daryani cheated on the stock, raising its price target from $ 135 to $ 145, reiterating its outperform rating.
With a week ago call from Canaccord and
Daryani removed its expectations for the quarter, which are likely to be reported in the final week in January. And like his peers, he cited strong initial demand for higher versions of the iPhone 12.
In boosting projections, Daryani points to a combination of better-unit demand and higher-than-expected average selling price, as consumer demand shifts toward higher-end Pro and Pro Max versions of the new phone line . He also notes the “growth of better services”, seeing a more than 30% increase in downloads from the App Store.
“Importantly not only do we see demand remaining strong [the December quarter] But also upside hope to maintain [the March quarter], “Extended lead bar for iPhone 12 Pro and, to a lesser extent, Pro Max,” he writes.
Daryani writes, “The iPhone Pro has now been shipping for two-and-a-half months and our analysis suggests that lead times have increased in each country we track, with the exception of the US.” He says Apple is offering same-day delivery on the iPhone Pro in the US, with special courier delivery, which costs an additional $ 10, but that standard delivery still requires a 21-day wait. , Initially a slight improvement from the 33-day wait of December.
He said that in China, delivery time for the 12 Pro has been reduced from 23 to 16 days – but still the longest lead time of 10 weeks from the launch of any iPhone in history. He said the delivery time of the base iPhone 12 and 12 Mini in all regions is short, “which could point to a strong mix of high-priced iPhone 12 professionals.”
Evercore analysts saw revenue of $ 104 billion and profit of $ 1.43 for the quarter, higher than the Street consensus of $ 102 billion and $ 1.40 per share. He sees 80 million iPhone units for the quarter, with an average selling price of $ 775.
Apple shares were up 1.2%, to $ 128.17, in recent trading.
Was up 0.9%.
Write Eric J. at [email protected] Savitz