CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target price of $220 is based on a P/E of 29x our CY 25 EPS estimate of $7.59, above peers given AAPL’s installed base and financial position. We hold our FY 23 (Sep.) EPS estimate at $6.01 while tweaking FY 24 to $6.56 from $6.61 and FY 25 to $7.20 from $7.30. Ahead of Sep-Q results set to be released after the close on 11/2, we look for EPS of $1.39 on revenue of $89.3B. We believe that Services (+8% Jun-Q/+5% Mar-Q) will accelerate in the Sep-Q/Dec-Q (+10%), benefiting from a higher installed base, China momentum, and improving app store/gaming/digital ad growth. We forecast iPhone sales will rise 2%-3% in the Sep-Q and 7% in the Dec-Q, on iPhone 15 momentum, higher Pro Max pricing, and given easier comps from sharp declines across hardware last year (ex. iPads). Geographic commentary, specifically in China, will be important to monitor, but we think concerns about iPhone 15 competitive pressures/state bans are unwarranted. We see an M3 silicon chip release in CY 24 helping Mac sales rebound.