Evercore ISI Out Positive on Apple (AAPL), 'China Smartphone Data - June Was a Big Month for Apple'

Evercore ISI analyst Amit Daryanani reiterated an Outperform rating and $180.00 price target on Apple (NASDAQ: AAPL).

The analyst comments "The broader China smartphone market saw y/y growth in June for the first time in 2022 and Apple’s shipments reported a 225% y/y growth rate. Smartphone shipments grew 9.1% y/y (vs. -8.8% y/y last month). CAICT data suggests MNC shipments (read, Apple) were up 225% y/y in May (vs. +13.7% y/y last month) and down -17.4% sequentially. We expected the market to begin to recover in June, but the magnitude of growth in MNC shipments was surprising as June is generally not a strong month. It’s possible the strong growth reflects a combination of pent-up demand and channel refill. China iPhone shipments grew ~25% for the June-qtr vs. consensus looking for a 2% decline in total iPhone revenue. The strong growth out of China should position Apple well to deliver some upside to relatively low expectations, but investors will likely remain cautious around the potential for a weak September guide. The key question will be: is this growth driven more by pent up demand that can sustain through the Sept-qtr or did the strong June work through most of the demand backlog? The CAICT data set includes shipments broken down by domestic vs. multi-national companies. Apple accounts for greater than 90% of the multinational (MNC) shipments, so it serves as a reasonable proxy now that shipment data is no longer broken down by operating system. Net/net: The major uptick in MNC growth rate is a clear positive for Apple and positions them well to outperform current iPhone revenue expectations. Maintain Outperform and $180 target."

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 $151.00 yesterday.

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