As Apple Inc. turned to the anticipated launch of its first 5G-capable phone at the end of this year, the company had only indicated confidence that its hardware was still in great demand during a global epidemic.
Apple shared AAPL,
The stock operated to another record high Friday, surpassing the $ 400 mark for the first time on Friday and eventually gaining 10.5%, as analysts cheered the company’s “surprisingly strong” earnings results. The smartphone giant easily predicted an epidemic in its June quarter, according to a Thursday announcement, with revenue of $ 59.7 billion comfortably above projections from earlier this year, before analysts closed stores, weak Budget, and other effects from COVID-19.
See more: Apple beats on earnings and announces stock split, sending shares to high
“Analyst results were surprisingly strong and even more impressive when one considers the COVID-19 epidemic,” wrote City analyst Jim Suva, who reiterated a buy rating on the stock and raised his price target to $ 450 to $ Increased to 400.
Hiper Kumar, analyst at Piper Sandler, held a similar view.
“Overall, the epidemic has limited impact on Apple,” he said in a note to customers. “In fact, one can make the case that Macs and iPads are actually benefitting well from home and distance learning trends because of work.”
Mac revenue increased from $ 5.8 billion to $ 7.1 billion, while iPad revenue increased from $ 5 billion to $ 6.6 billion.
Kumar dwarfed the company’s hopes for a strong back-to-school season this year and raised its price target from $ 310 to $ 450 while retaining more weight on the stock.
RBC Capital Markets analyst Robert Muller wrote that the iPhone SE helped drive Apple a high for its established base, contributing to smartphone trends that allowed it to “drive recurring cash flow from its loyal customer base.” Continues to gain confidence behind capacity. “
Muller is optimistic about smartphone trends over the next few quarters, with even Apple confirming that his next phone will come a “few weeks” late than last year, when he announced his new phone in late September Started selling models. It will release the next iPhone in Apple’s next fiscal year, which will begin in October.
“Recall that the iPhone X is a much awaited form factor upgrade, released in early November and yet breaking the iPhone’s quarterly revenue record,” he wrote. “Despite the anticipation of an upgrade to 5G, Apple expects the recent iPhone performance (which is the top expectations) to continue until the next quarter.”
He rates the stock on Outperform, setting his price target at $ 390 to $ 445.
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Samik Chatterjee of JPMorgan wrote that Apple “stunned expectations of a steady 3% / C2Q earnings boom that is not missing a beat,” and that management accents to look at the current quarter Was excited by
“All in all, Apple’s ability as a company in a consumer discretionary product segment has been largely due to the gradual slowdown in F3Q / C2Q volumes for utility and product cycle speed associated with products by consumers despite widespread disruption Talk, Chatterjee wrote, is ready to circumvent the traditional practice of buying from the physical channel when needed, and makes us more optimistic relative to the upcoming 5G product cycle. Set its price target from $ 425 to $ Raised to 460.
Chatterjee said Apple also has “low-value enterprise opportunities” as more people use Macs and iPads for remote work.
“Due to management’s guidance on the previous quarter’s call, the quarter was expected to strengthen, guiding unit growth trends to remain in F4Q is likely to surprise investors which is most likely That it was hoping to be tailwind for once. These products, “he wrote.
T. of Canacord Genuity. Michael Walkley was also encouraged that the company expected double-digit growth in the September quarter for all hardware categories except the iPhone, and he praised “blowout” results for the June period from $ 440 to its price. Target increased to $ 460. And keeping a buy rating on the stock.
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According to FactSet, at least 19 analysts raised their price target on Apple’s stock, and the new average target was $ 397.65. Of the 38 analysts tracked by FactSet, which covers Apple’s stock, 26 buy it, eight rate it, and four sell it.
Apple plans to split its stock four-on-one, which will affect shareholders of record on August 24. The stock will begin trading on a split-adjusted basis on August 31, a move Citi’s Suva has said is “important for retail investors.” Apple said the stock split was intended to make the stock “more accessible to a wider base of investors.” have to make.
Shares are up 39% over the last three months as the Dow Jones Industrial Average DJIA.