Apple’s (AAPL) fiscal Q3 results and Q4 outlook are unlikely to sway investor sentiment, UBS said in a report sent Friday.
“Apple bulls will continue to hang their hat on the view that the iPhone is entering a ‘supercycle’ later this year driven by GenAI and will act as an accelerant to Services growth,” the investment firm said.
“On the other hand, more cautious investors will point to a reported [September revenue] guide that is not accelerating on an adjusted basis from the June [quarter],” it said.
Following the “largely inline” quarterly results, UBS raised its full-year 2024 EPS forecast to $6.69 from $6.56, and fiscal 2025 EPS at $6.88 versus its previous estimate of $6.86.
UBS is projecting iPhone shipments totaling 51 million units in the September quarter, up 4% year over year and largely in line with consensus of 50.7 million units. That would account for about 23% of its fiscal 2024 estimate of 222.5 million units.
UBS reiterated its neutral rating on the stock and $190 price target.