Apple earnings smasher prompts upgrade, price target increases

seekingalpha2021-04-29

Goldman Sachs upgrades Apple(NASDAQ:AAPL) from Sell to Neutral after yesterday's earnings blowout, saying the firm's "original view that the iPhonecycle would would disappoint in the middle of COVID was clearly wrong."

The firm notes that iPhone, Mac, and iPad sales all outperformed Goldman's expectations. And Apple said iPad demand was so strong the company expects to leave $3-4B "on the table" in FQ3 to June.

Goldman stays on the sidelines believing that these demand levels will be difficult for Apple to sustain.

Raymond James (Outperform) raises its Apple price target from $160 to $185, expecting the next iPhone cycle to deliver the unit growth that didn't happen last year due to the pandemic.

Morgan Stanley (Overweight) lifts Apple's PT from $158 to $161, saying the earnings strength will help ease the risks to the 2022 consensus estimates as the pandemic-driven tailwinds ease.

"Apple provided partial guidance for fiscal third quarter, and both the dividend and buyback programs were boosted. But what impressed the most, in my opinion, was the extent of Apple's Q2 beat. The company's performance bordered "unbelievable," as Morgan Stanley's analyst pointed out during the conference call. With a historic earnings smasher, Apple made sure to leave no room for post-earnings bearishness," writes Seeking Alpha'sDM Martins Research.

Apple shares are up 2.8% pre-market to $137.33.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
18