Apple (AAPL) Has Upside to September Estimates, Mizuho Says; Price Target Lifted

Shares of Apple (NASDAQ: AAPL) are fractionally higher Wednesday afternoon amid positive comments earlier from Mizuho Securities analyst Abhey Lamba, who previewed the iPhone giant's upcoming quarter. The analyst maintained a Buy rating and boosted his price target to $105.00 (from $90.00) into the Q3 quarterly results (July 22).

Lamba sees inline Q3 results helped by sales of iPhone 4S in China while iPads lack catalyst. Specifically, the analyst sees Q3 revenues and EPS of $37-38bn and ~$1.25 ranges vs consensus of $37.9bn and $1.22, respectively. They expect iPhone shipments of 34-35 million vs. consensus of about 35 million. The firm sees margins slightly ahead of its guidance range of 37-38%.

Looking to Q4, the analyst sees the company's outlook above the consensus. Specifically, the firm sees Aple’s F4Q14 revenue of $42-43 billion range vs consensus of $41 billion, while EPS estimates of $1.34 could have ~$0.05-0.10 upside potential. The expect iPhone units in the range of 39-40 million or 3-4 million above current expectation.

On the upcoming iPhone 6, the firm's check continue to indicate a potential for a slightly earlier product launch than historical periods. The 4.7" screen phone will likely be launched by mid-September while 5.5" in October/November time frame. Also they still expect the release of a new product category, most likely a watch, later this year.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $95.35 yesterday.

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