Apple (AAPL) PT Raised to $440 at Deutsche Bank Due to Upside Expectations and GM% At an All Time High

July 31, 2020 11:56 AM

Deutsche Bank analyst Jeriel Ong raised the price target on Apple (NASDAQ: AAPL) to $440.00 (from $400.00) while maintaining a Buy rating, citing iPhone, Macs, and iPad upside expectations, Services GM% achieving an all time high, and every geography observed y/y revenue growth.

The analyst stated "AAPL reported Jun-qtr rev/EPS that significantly beat Street estimates by ~14%/25% on the top/bottom line, though they elected not to provide a forward quarter guidance once again. While such a decision could be interpreted as a sign of uncertainty, AAPL did provide more segment commentary and guided to select line items moreso within their control (tax, opex, OI&E) perhaps signaling they are on a path toward a normalized guidance practice next quarter. Overall, the positives outweigh the (minor) negatives in the quarter, and we suspect that AAPL's confidence that such trends simply continue into the Sept-qtr could understate the reality that they could in fact strengthen, driven in our view by Mac, iPad, global normalization of demand aiding all segments. Long-term, we continue to believe that AAPL is the best name to own in the IT Hardware landscape, outweighing our worries regarding the large intra-quarter move and subsequent valuation expansion. We raise our P/T to $440 ($400 prior) on raised CY21 estimates."

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