RBC Is Raising Apple Estimates Because Of The iPhone

In a report published Tuesday, RBC Capital analyst Amit Daryanani maintained an Outperform rating on shares of Apple Inc. AAPL with a price target raised to $142 from a previous $140 due to recent checks that suggest iPhone demand remained strong through the March quarter. According to Daryanani, Apple should report revenue of $55.4 billion (versus prior estimate of $54.2 billion), which slightly exceeds the high-end of Apple's $52 billion to $55 billion guidance. The analyst added that gross margins could surprise on the upside due to yield efficiency, supply chain pricing, Apple Watch ramps, mix shift favoring iPhone 6+ and average selling prices benefits. Given these dynamics, Daryanani now expects Apple to earn $2.14 per share in the second quarter after previously projecting an earnings per share of $2.03. Shares of Apple recently traded at $125.44, down 0.73 percent.