Although Apple Inc. shares are declining, despite an outstanding report, there are many analysts who hold the future for the company.
The smartphone giant recorded $ 1.68 per share in earnings earnings of $ 111.4 billion on Wednesday afternoon, both record numbers that came in well before the consensus forecast. The iPhone business alone generated revenue for the holiday quarter that was $ 6 billion above the consensus view.
Following the strong report, investors may be wondering whether Apple AAPL,
can sustain its momentum, CEO Tim Cook addressed in response to a question about the company’s earnings call. Cook argued that Apple still has significant organic growth opportunities due to newer products such as portable, emerging markets, enterprise sales and more.
Andrew Uerkwitz, an analyst at Oppenheimer, wrote positively about Apple’s potential in more mainstream products.
“We believe that Mac (a high single-digit share) and iPhone (a low-teen stock) have the best to earn, powered by Apple Silicon and 5G acceptance, respectively,” he wrote, referring to Apple’s custom M1 slide that it rolls gradually. out to its Mac range. “We expect the significant advantages that M1 (only the first generation!) Shows in terms of performance and power efficiency over mainstream competitors, and a tighter integration between Mac and iOS devices to boost Mac growth and more convince users to switch from Windows PC to Mac.
He has a better performance rating and $ 160 price target on the stock.
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Jefferies analyst Kyle McNealy wrote about an ‘impressive quarter with another time to come’, as Apple is still selling ‘5G devices’. He was excited about a massive legacy base in China in need of upgrades as well as a weakened Huawei due to US export restrictions. The strong iPhone cycle could also continue to be a catalyst for more services and portable revenue, he said.
McNealy rates the stock as a buy with a price target of $ 160.
Raymond James analyst Chris Caso also suggested that this latest report could be the beginning of a strong iPhone journey in a comment titled “We Got the 5G Cycle We Were Looked, We Don’t Think It’s Over.” He writes that Apple not only expected bigger sales than December, but also has strong margins due to a larger mix of more expensive devices.
“While Apple has delivered this cycle, we have long considered it a two-year 5G cycle, with better global 5G coverage that offers greater incentive for upgrades, along with what we expect to be a new form factor. , “he wrote, while maintaining a better performance rating and raising its price target to $ 160 from $ 150.” We expect services to benefit from the improvement in unit volume (which contributes to the installed base), along with new service offerings . “
Bernstein analyst Toni Sacconaghi said Apple’s announcement that the iPhone 12 Pro models had sold “exceptionally well” in the latest quarter, despite some economic pressures due to the pandemic, was “the most striking”.
He sees backwinds for Apple for much of the current fiscal year as distant trends move toward more technology purchases. “Ironically, despite the fact that some retail outlets were closed, it appears that Apple was a strong beneficiary of the re-spent consumer spending during the pandemic,” he wrote. “That said, we are concerned that the power of an iPhone upgrade cycle and the pandemic in FY22 may diminish amid the increasingly difficult annual comparison for the company.”
He has a market performance on the stock and raises his price target to $ 132 from $ 120.
Apple shares have risen 27% over the past three months than the Dow Jones Industrial Average DJIA,
increased by 16%.