Apple Stock Gains Ahead of Next iPhone Launch

2 months ago 9

Updated July 6, 2021 1:53 p.m. ET / Original July 6, 2021 10:41 americium ET

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The Apple Tower Theatre retail store successful Los Angeles.

Patrick T. Fallon/AFP/Getty Images

Apple shares person lagged the marketplace truthful acold this year, up 6% for the twelvemonth done Friday, trailing a 17% rally successful the S&P 500. But the banal is moving higher Tuesday arsenic attraction turns to the autumn motorboat of the iPhone 13.

Apple was up 1.4%, astatine $141.98, successful caller trading. The S&P 500 is down 0.5%.

J.P. Morgan expert Samik Chatterjee reiterated his Overweight standing connected Apple shares (ticker: AAPL) and lifted his people terms to $170 from $165. He writes successful a probe enactment that the stock’s underperformance twelvemonth to day reflects a deficiency of catalysts for the stock. But helium notes that request for iPhone 12 has “remained comparatively resilient”—and helium points retired that Apple shares typically outperform successful the July-September play heading into the yearly autumn announcement of caller phones. 

“We judge the setup is charismatic and Apple shares are positioned for a important outperformance implicit the adjacent 2-3 months fixed the archetypal fractional underperformance,” positive near-term upside from caller marketplace stock gains for the iPhone 12, successful peculiar successful China, helium writes. 

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The expert argues that existent debased capitalist expectations for the iPhone 13 sets the signifier for beardown show by the banal aft the motorboat of the caller phones. He thinks request volition outstrip existent forecasts. Chatterjee sees echoes of the iPhone 11 launch—expectations astatine that clip were low, with investors looking a twelvemonth retired to the iPhone 12, the company’s archetypal 5G-capable phones. But the iPhone 11 sold amended than astir pundits had expected. 

Meanwhile, Loop Capital expert Ananda Baruah writes successful a probe enactment that checks with the proviso concatenation find that Apple has lifted its iPhone physique plans for calendar 2021 to the 220 cardinal to 225 cardinal range, from a caller 205 million. (Apple ne'er comments connected its manufacturing plans oregon unannounced products similar the adjacent iPhone.) He maintains his Buy standing connected Apple shares, though helium trims his people terms to $150 from $160.

On a abstracted note, Evercore ISI expert Amit Daryanani reports that Apple’s App Store developer gross was up 23% successful June, accelerating from gains of 13% successful May and 18% successful April. That brings wide maturation for the 4th to 18%, down from 32% successful the March quarter. Nonetheless, helium fears that Street estimates for services gross maturation for Apple’s June 4th wide are excessively high—consensus is for 23% growth, down from 27% successful the March quarter. He’s looking for 19% growth.

Daryanani remains a semipermanent bull connected Apple shares, keeping his Outperform standing and $175 terms target.

Write to Eric J. Savitz astatine

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