Big drum roll please, it’s almost time for the main event. The rest of the Big Tech stars have already dialed in their latest financial statements, but it’s time for the leader of the pack to announce the quarter’s display; following the close today, Apple (NASDAQ:AAPL) will step up to the earnings plate to deliver its F2Q report (March quarter).
Needless to say, given Apple’s “unique perch and perspective around consumer demand globally,” Wedbush analyst Daniel Ives is in no doubt Wall Street will be closely monitoring proceedings.
And ahead of the print, Asia supply chain checks made by Ives suggest to the 5-star analyst that Apple should be able to at least meet Street expectations for iPhone revenue, if not better that. “We believe iPhone units based on a clear uptick in demand around the key China region this quarter could show some upside despite the shaky macro as higher ASPs and overall upgrade activity on iPhone Pro 14 carry the day for Cook & Co,” Ives explained.
Boosted by stable Services revenue, combined, Ives expects Apple’s headline numbers will meet the forecasts. In fact, with the past 16 months bringing in another 100 million+ new iPhone users into the Apple ecosystem, Ives expects the Services business to see an “acceleration” in FY24.
As for the June quarter outlook, Ives sees Apple providing a “relatively conservative” guide. However, earnings aside, the big event for Apple this year will be the “anniversary edition” iPhone 15 launch, which is slated to take place around September. Compared to some other “peak to valley iPhone cycles of the past,” given Apple has been gaining market share in China and demand appears to be holding steady in Europe and the US, Ives expects a “steadier transition” from the iPhone 14 to iPhone 15.
All told, ahead of the print, Ives maintains an Outperform (i.e., Buy) rating for AAPL shares backed by a $205 price target. The implication for investors? Potential upside of 23% from current levels. (To watch Ives’ track record, click here)
Over the past 3 months, 25 analysts have chimed in with AAPL reviews and these break down into 21 Buys, 3 Holds and 1 Sell, all culminating in a Strong Buy consensus rating. However, given the stock’s excellent year-to-date performance (up 28%), the $177.23 average target suggests a modest 6.73% upside. (See Apple stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
