Raymond James Reiterates Market Perform Rating on Apple

Raymond James analyst Melissa Fairbanks reiterated a Market Perform rating on Apple (NASDAQ: AAPL).

“We reiterate our Market Perform rating on Apple following a beat in the March print and better-than-expected June outlook. iPhone demand continues to surprise to the upside, with broad-based strength across all regions and China/APAC as standouts this quarter.

Notably, despite the raise, June guidance remains tempered by ongoing supply constraints (associated with leading-edge 3nm node) and rising memory costs.

Positively, Services momentum remains a bright spot (guided up ~16% y/y for the June quarter), aided by Apple hardware installed based which now surpasses 2.5 billion active devices, up from 2.35 billion a year ago.

Notably, our recent trip through Asia provided limited detail in terms of build plans or mix, though we would note several suppliers expect the lower-end iPhone portfolio to bear the brunt of the higher memory costs (while premium tier pricing remains unchanged), potentially tempering end market demand for the 18 cycle.”

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