Apple (AAPL) AppStore Growth Accelerated in March, Evercore ISI Reiterates Outperform
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Evercore ISI analyst Amit Daryanani reiterated an Outperform rating and $210.00 price target on Apple (NASDAQ: AAPL) after App Store revenue growth rose to 8% in the month of March, bringing the growth rate to 7% for the March quarter. This represents the first monthly move higher after 9 straight months of deceleration.
The analyst stated "The acceleration should continue going forward as comps begin to get much easier in April. While the App Store remains the largest component of services revenue, it has become less important to the overall business as evidenced by Dec-21 results. App Store revenue growth last quarter was ~13%, but growth for the overall services business came in at an impressive 24% (worth noting AAPL has called out Advertising as the top contributor to their services growth for 2 quarters in a row now). Consensus is currently forecasting ~17%, which looks achievable even with App Store growth likely to remain in the single digits. Comps get easier starting in April, so we expect a return to double digit growth at that time."
Shares of Apple closed at $178.44 yesterday.
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