Wall Street is becoming more optimistic about
upcoming earnings report.
Earlier this week, I noticed a couple of analyst notes looking forward to Apple’s (ticker: AAPL) financial results in December and raising the estimates and price targets. Late Wednesday, Evercore ISI analyst Amit Daryanani called in, reiterating his Outperform rating as he raised the stock price target to $ 145 from $ 135.
As with the talks earlier this week from Canaccord and
Daryanani raised expectations for the quarter, which are likely to be reported in the last week of January. And like his peers, he cited strong early demand for advanced versions of the iPhone 12.
In raising estimates, Daryanani points to a combination of better-than-expected unit demand and higher-than-average sales prices, as consumer demand is trending toward the newer Pro and Pro Max versions of the new phone line. He also notes “better service growth”, given better than 30% growth in downloads from the App Store.
“It is important that we do not just see that demand remains robust [the December quarter] but also expect the upside to maintain [the March quarter]”Given extended lead times for the iPhone 12 Pro and, to a lesser extent, the Pro Max,” he writes.
“The iPhone Pro has now been shipping for two and a half months, and our analysis suggests that delivery times remain elevated in every country we track, with the exception of the United States,” writes Daryanani. He says Apple is offering same-day delivery on the iPhone Pro in the US with special courier delivery that costs an additional $ 10, but that standard delivery still requires a 21-day wait, a modest improvement from the 33-day wait in early December.
He notes that the delivery time for 12 Pro in China has dropped from 23 to 16 days – but still the longest lead time is 10 weeks from the launch of some iPhones in history. He notes that the base iPhone 12 and 12 Mini have shorter delivery times in all regions, “which may point to a strong mix of iPhone 12 professionals with higher prices.”
The Evercore analyst promised $ 104 billion in revenue and $ 1.43 per share in the quarter, above the $ 102 billion Street Consensus and $ 1.40 per share. He sees 80 million iPhone devices for the quarter, with an average selling price of $ 775.
Apple shares rose 1.2% to $ 128.17 in recent trading. The
was up 0.9%.
Write to Eric J. Savitz at firstname.lastname@example.org