Evercore ISI Raises Apple Price Target to $330, Top Pick

Evercore ISI analyst Amit Daryanani raised the price target on Apple (NASDAQ: AAPL) to $330.00 (from $325.00) while maintaining an Outperform rating.

“Our checks coupled with industry data points suggest that there is near-term upside to AAPL estimates driven by robust iPhone demand + minimal memory cost headwind.

Hence, we are raising our estimates for Dec-qtr to $140.5B/2.71 (vs. street at $137.3B/$2.66) to reflect stronger iPhone demand enabling upside vs. their guide for 10-12% y/y growth.

Furthermore, we note that in the near term (December/March quarters), AAPL is insulated on memory inflation, so we expect this upside to flow through to the bottom line fairly well.

From a demand perspective, we foresee stronger iPhone demand across N. America, China and India, while we see modest weakness in Europe.

Demand has also skewed towards the higher-end models, implying better ASP benefits vs. street models.

Depending on how the next set of LTA negotiations transpire, there is potential for headwind to GMs in the June-qtr and beyond though this is a manageable situation vs. anyone else in our group.

Net/Net: Sticking with our TOP PICK rating but increasing our price target to $330 (prior $325) to reflect higher FTM EPS.”

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