UBS Reaffirms Neutral on Apple, $296 Price Target

UBS analyst David Vogt reiterated a Neutral rating and $296 price target on Apple (NASDAQ: AAPL).

“Against a challenging supply chain/component backdrop, channel checks point to June iPhone and total company rev tracking in-line with our forecast of 20% and 15% YoY growth respectively as we est iPhone took share in the qtr.

Checks also indicate Macs took share driven by the ‘Neo’ but mix to lower ASPs should cap rev upside in our view.

Finally, our analysis suggests ‘Services’ rev should grow ~13% on a FX neutral basis with limited upside owing to headwinds in the App Store (link) and Google search related rev.

Therefore, we expect: Total rev to track to our $107.8B est (VA Cons $108.1B) w/ limited upside. iPhone rev to track our $53.3B est (VA Cons $53.1B).

Diluted EPS of $1.84 (VA Cons $1.87) with potentially a few pennies of upside if OpEx comes in at the low-end of the guide or ~$18.8B vs our ~$19.0B est.”

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