Stronger Component Supply Should Boost Apple's (AAPL) iPhone Biz, BofA Securities Raises iPhone Units

BofA Securities analyst Wamsi Mohan reiterated a Buy rating and $210.00 price target on Apple (NASDAQ: AAPL) ahead of F1Q22 results on Thur Jan 27th AMC.

The analyst stated "We expect a strong F1Q on improved supply of higher end phones including the iPhone 13 series (although older models and iPads remained constrained). We raise our iPhone ests for F1Q from 79mn to 81mn, which is higher than Street at 80mn. However, our iPad ests remain at 13.69mn which is lower than Street est. of 17mn. Our rev/EPS for F1Q are $121bn/$1.90 vs. Street at $119bn/$1.91. Supply constraints had impacted Sep qtr rev by about $6bn, and Apple had guided for a larger negative impact in F1Q (which likely improved). We model GM of 41.6% which is at the low-end of guidance range 41.5-42.5%, and vs. Street at 41.9%. Reit Buy on multiple tailwinds on both hardware (AR/VR-led iPhone upgrade cycle, new revenue stream from new products) and services side (acceleration in services, growth in users and average selling prices, and increased penetration of IB). Our PO stays at $210 on 33x (unchanged) our C23E EPS of $6.39."

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 $161.62 yesterday.

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