Apple (AAPL) posted a “modest beat” for fiscal Q3 revenue and earnings, supported by strength across most divisions, and projected Q4 gains in iPhone and service segments signal “the best is yet to come,” BofA Securities said Thursday in a report.
Results on from Q3 showed “growth accelerated in iPhone, iPad and wearables and across regions,” while guidance for the September quarter was “conservative,” BofA said.
“We see upside in iPhones/Services given the upcoming launch of iPhone 16 with Apple Intelligence,” BofA said. “We further see the potential for significant acceleration of units in the December quarter and overall in FY25 with the rollout of Apple Intelligence.”
BofA reiterated its buy rating on Apple, citing “potential for consensus estimates to be revised higher given multiyear iPhone upgrade cycle, tailwinds to gross margins and strong cash flows.”
BofA kept its $256 price objective on Apple stock. At least four other analysts boosted their targets after Apple’s better-than-expected results on Thursday, partly on gains in iPad and Mac sales.