Apple (AAPL) iPhone Growth Sustains Despite Worries, RBC Capital Notes
RBC Capital analyst Amit Daryanani reiterated an Outperform rating and $150 price target on Apple (NASDAQ: AAPL) noting iPhone growth sustains despite the worries.
Daryanani commented, "AAPL printed upside to Sept-qtr results and guided Dec-qtr inline with street expectations (though we suspect much better than buyside fears). While we are cognizant the compares remain difficult into Mar-qtr we think there are several tailwinds that should benefit AAPL across both revenues and EPS – 1) ~1/3 of the install base has migrated to the 6 product line, 2) Android switch rate at 30% suggests further gains likely, 3) tailwinds in China from LTE expansion and further uptake of AAPL products, 4) ASP’s should sustainably ramp higher given memory uptake and 5) gross-margins could see upside given leverage and cycle efficiency (S cycle typically 150bps higher GM). Hence, we think AAPL remains an attractive large-cap name to own, maintain OP rating."
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Shares of Apple closed at $114.55 yesterday.