Shipping Times for iPhone 13 Improving, Apple (AAPL) Stock Remains 'Solidly Positioned' - BofA

December 3, 2021 7:13 AM EST
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Price: $171.36 --0%

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BofA analyst Wamsi Mohan reiterated a Neutral rating and a $160.00 per share price target on Apple (NASDAQ: AAPL) stock following a recent bull rally.

Similar to other Street analysts who are closely tracking iPhone shop dates, Mohan sees improving lead times as of December 02.

“The availability at U.S. Apple stores seems better than carrier websites, which could be due to different allocations between Apple and carriers. In general, availability of iPhone 13 Pro and Pro Max models seem to be more extended vs. iPhone 13 and 13 mini. In China, ship dates for all configurations of the iPhone 13 Pro and Pro Max are on average 18 days out, which is significantly better than the 39 days last month,” the analyst said in a client note.

On the recent Bloomberg report about slowing demand, the analyst reminds that BofA’s “iPhone estimates are already below Street estimates (79mn vs. 82mn for the Dec quarter, and 46mn vs. 56mn for the Mar quarter).”

“Based on feedback from our conversations with some investors, in our opinion, the recent rally in shares in part may reflect investor expectations of relatively stable demand and continued strong cash flows and capital return for a stock that has performed largely in-line with the market YTD ( both A APL and SPX u p 21%) and materially underperformed many large cap tech peers. Despite any near term pressure on estimates, AAPL remains solidly positioned to weather any macroeconomic slowdown,” the analyst concluded.

Apple shares are down 0.3% in pre-open Friday.

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