Wall Street analysts are eagerly awaiting Apple’s earnings report this week as the tech giant’s stock continues to soar with a 50% rally in 2023. As a result, analysts are adjusting their forecasts and raising their target prices to match Apple’s impressive performance.

Analysts Raise Target Prices for Apple Stock

On Tuesday, two prominent analysts increased their target prices for Apple stock (AAPL), signaling their confidence in the company’s ability to further grow its valuation. With Apple set to announce its earnings on Thursday, these target price revisions are generating anticipation among investors.

TD Cowen analyst Krish Sankar stands out among the analysts, as he not only reiterated his Outperform rating on Apple shares but also raised the company’s price target from $195 to $220. This positive outlook reflects Sankar’s belief that Apple can overcome the challenges posed by macroeconomic conditions affecting its hardware businesses. Sankar predicts a temporary decline of 2% in June quarter revenue, followed by a rebound and 1% growth in the September quarter. Despite these short-term headwinds, Sankar maintains confidence in Apple’s stable iPhone demand.

Apple’s Defensive Position and AI Potential

Recognizing the resilience of Apple as a “defensive name,” Sankar foresees the company as an eventual leader in the field of artificial intelligence (AI). He highlights the neural networking capability embedded in Apple’s processors, which not only supports inference capabilities for iPhone and Mac but also allows investors to tap into future AI trends.

As Wall Street eagerly awaits Apple’s earnings report, Sankar’s optimistic outlook and increased price target remind us of the tremendous potential that lies ahead for this tech giant.

Apple Analyst Forecasts “Solid Results” for Quarter

Baird analyst William Power has reiterated his Outperform rating on Apple’s stock, while revising his target price to $204 from $180. Power is optimistic about the upcoming quarter’s results, but cautions that the company’s shares are already trading at near-record highs.

Attention Shifts to iPhone 15 Launch

After Apple’s earnings report, investor focus is expected to shift towards the release of the highly anticipated iPhone 15 and the company’s next smartphone cycle, according to Power. He points out that historically, Apple shares tend to outperform from mid-August to mid-September. However, with the stock currently at a historically high valuation, he suggests being an aggressive buyer “on any pullbacks.”

Analyzing Q3 Expectations

Analysts anticipate Apple to report sales of $81.9 billion for the fiscal third quarter, representing a slight decline of about 1% compared to the same period last year. Earnings per share are projected to be $1.19, down by a penny from the previous year.

  • iPhone sales are expected to reach $40.3 billion, down approximately 1%.
  • Mac sales are forecasted to be $6.6 billion, a decrease of around 10%.
  • iPad sales are estimated at $6.5 billion, also down about 10%.
  • The “wearables, home and accessories” category is predicted to offset these declines with estimated sales of $8.3 billion, reflecting a 3% increase.
  • Services revenue is expected to reach $20.8 billion, a 6% increase from the same quarter last year; however, it will be slightly lower than the previous March quarter.

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