Apple (AAPL) PT Raised to $130 at BofA/Merrill Lynch on Higher iPhone Estimates

BofA/Merrill Lynch analyst Wamsi Mohan reiterated a Buy rating and boosted his price target on Apple (NASDAQ: AAPL) to $130.00 (from $120.00) as they raise FY2015 iPhone estimates to 200 million.

The firm is raising their December quarter iPhone shipment forecast by 3 million units and March quarter shipment forecast by 2 million units for a total 5 million increase to F15 units (to 200 million from 195 million previously).

"Our estimate change is predicated on stronger than expected demand for the new iPhones and improved availability across the board for both the iPhone 6 and iPhone 6+," the analyst said.

The firm also sees the mix shifting slightly higher to the 6 versus the 6+. "Our checks, including our recently published survey of 400 U.S. buyers, indicates stronger demand for iPhone 6 (vs. 6 plus, which could be a U.S. buyer preference), and for the 64GB storage option vs. the 16GB or 128GB. We slightly increase the mix of iPhone 6 in F15 (55% of total iPhones vs. prior 54%) with the remaining units allocated between the 6 plus (28%), 5S (6%), 5C (9%) and future model (3%)"

Lastly Mohan said the Watch could be a positively surprise and is estimating 22.9 million for C15 and 38.5 million for C16.

The firm's F15 revenue and EPS estimates move to $224bn/$8.12 from $221bn/$7.97, respectively. F16 revenue and EPS estimates move to $225bn/$8.27 from $225bn/$8.26, respectively.

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 $115.07 yesterday.

You May Also Be Interested In

• Lithia Motors (LAD) PT Lowered to $310 at Craig-Hallum
• Pacific Premier Bancorp (PPBI) PT Lowered to $27 at Keefe, Bruyette & Woods
• Premier Financial Corp. (PFC) PT Raised to $22 at Piper Sandler