Apple (AAPL) App Store Revenues Hold Up Despite Downloads Artificially Culled Drop, BofA Securities Reiterates $155 PT

March 11, 2021 7:37 AM EST
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Price: $134.16 -0.25%

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    44 Buy, 19 Hold, 6 Sell

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BofA Securities analyst Wamsi Mohan reiterated a Neutral rating and $155.00 price target on Apple (NASDAQ: AAPL) after Global App Store revenue increased +34% y/y to $4.5bn through Feb 28th, according to third party data on publisher revenues. Downloads declined 2% y/y following the removal of nearly 50k unlicensed apps from the Chinese app store in Dec 2020. In China, downloads declined 27% y/y, with game downloads down 33% y/y given games were the most impacted as a result of the crackdown. Revenues in the country held up better, growing 18% y/y. Globally, ASPs grew 36% y/y to $0.74.

The analyst stated "After increasing 24% y/y in F1Q, we expect total Apple Services revenue (including App Store/Apple Music/iCloud/Google TAC/AppleCare, among others) to decelerate to 19% y/y in F2Q (could be conservative) and 17% y/y in F3Q. With the total install base hitting 1.65bn, we see this growth as achievable."

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 $122.03 yesterday.



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