Since Apple Inc. heading for the expected launch of the first 5G phone later this year, the company has just given a compelling signal that its hardware is still in high demand during the global pandemic.
Apple shares the AAPL,
driven by another record on Friday when stocks crossed the $ 400 mark for the first time and eventually gained 10.5% as analysts encouraged the company’s “amazingly strong” results. According to Friday̵
Other information: Apple beats on returns and announces stock split, sending stocks to record highs
“Apple’s results have been amazingly strong, and when you think the COVID-19 pandemic is even more impressive,” wrote Citi analyst Jim Suva, who reiterated a share-to-share rating and raised its price target to $ 450 from $ 400.
Analyst Piper Sandler Harsh Kumar had a similar opinion.
“Overall, the pandemic seems to have a limited impact on Apple,” he said in a note to clients. “In fact, it’s possible that the Mac and iPad really benefit from working from domestic and distance trends.”
Mac revenue rose to $ 7.1 billion from $ 5.8 billion, while iPad revenue rose to $ 6.6 billion from $ 5 billion.
Kumar reaffirmed the company’s expectations for a strong season of the school year and raised its price target to $ 450 from $ 310, while maintaining an overvalued stock rating.
RBC Capital Markets analyst Robert Muller wrote that the iPhone SE helped Apple reach a new level of its installed base, contributing to smartphone trends that “continued to gain confidence in Apple’s ability to manage recurring cash flows from a loyal customer base.”
Muller is optimistic about smartphone trends over the next few quarters, although Apple has confirmed that its next phone will be “weeks away” from last year when it began selling its new models in late September. This will postpone the next release of the iPhone to Apple’s next fiscal year, which begins in October.
“Recall that the iPhone X, a highly anticipated upgrade form factor, was released in early November and still delivered a record quarterly result from the iPhone,” he wrote. “Despite expectations of the 5G update, Apple expects the latest iPhone performance (which exceeded expectations) to continue until the next quarter.”
It rates inventory for higher performance while increasing its price target to $ 445 from $ 390.
Read: Pandemic? Antitrust? You don’t have to worry about Big Tech, which still has a turnover of $ 200 billion
Samik Chatterjee JP Morgan wrote that Apple “surprised even the bullish expectations of F3Q / C2Q profits by barely missing a break” and was convinced of the tone of management looking at the current quarter.
“Overall, Apple’s ability as a product segment at the customer’s discretion to completely tear the gradual slowdown in F3Q / C2Q despite the massive disruption speaks to the degree of utility that consumers associate with products, as well as the momentum of the product cycle, leading them to that they are willing to circumvent the traditional practice of purchasing from the physical channel if necessary, and leads us to a more optimistic relationship to the upcoming 5G product cycle, “wrote Chatterjee, who is overweight in stock and has raised his price target to $ 460 out of 425 dollars.
Chatterjee said Apple also has an “underappreciated business opportunity” as more people use Macs and iPads to work remotely.
“Although the company’s management-led strength was expected this quarter in connection with the latest profit challenge, guidance on unit growth trends will be maintained at F4Q likely for investors, as most are likely to expect a one-off breakthrough in these products. , “he wrote.
T. Michael Walkley of Canaccord Genuity was also encouraged that the company expects double-digit growth for all hardware categories except the iPhone in September and praised the “blowout” results for June, raising its price target to $ 460 from $ 440 and keeping the purchase rating in stock.
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At least 19 analysts have raised their price targets on Apple stock after the FactSet report, with a new average target of $ 397.65. Of the 38 analysts tracked by FactSet that cover Apple’s inventory, 26 rated their purchases, eight rated their holdings, and four rated their sales.
Apple plans to divide its shares from four to one, which will affect shareholders’ record from August 24. The shares will start trading on an adjusted basis on August 31. important for retail investors. “Apple said the goal of the stock split is to increase stock availability to a wider investor base. “
Shares of Dow Jones Industrial Average DJIA, shares have risen by 39% in the last three months,
increased by 8%.