Rating
Hold
Price target
$287
Previous
$280
Implied upside
+7%

UBS analyst David Vogt raised the firm’s price target on Apple (NASDAQ: AAPL) to $287.00 (from $280.00) while maintaining a Neutral rating.

“Supply chain checks and analysis of sell-through data suggest modest upside to our iPhone ests while demand for the Neo and Mac mini suggests demand at least in-line with our Mac rev forecast.

For ‘Services’, we don’t expect upside to our ~14% revenue growth forecast as strength in payments is offset by muted growth in the App Store (link).

Therefore, for the March qtr we expect slight upside to our $109.0B est (VA Cons $109.3B) driven by slight upside to our iPhone $56.2B est (VA $56.5B).

Furthermore, while demand for the Neo and Mac mini has been strong, our ests already capture the demand.

Finally, given we expect ‘Services’ gross margin of 76.5%, we expect consolidated gross margin of 48.5%, at the mid-point of the 48%-49% guide leading to diluted EPS a few pennies above our $1.94 estimate (VA Cons $1.94).”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.

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