Market Overview

Expectations For Apple's Q3 Have Moved Higher, And Not Because Of The Galaxy Note Recall

Expectations For Apple's Q3 Have Moved Higher, And Not Because Of The Galaxy Note Recall
Related AAPL
And The Oscar Goes To... Apple
Buffett's Bucket List Buys: The Oracle Making Unexpected Plays Late In The Game
Google Assistant Expands Past Pixel In Fight Vs. Apple's Siri, Amazon's Alexa (Investor's Business Daily)
Related SSNLF
Samsung Introduced 10 Times The Number Of Models In 2016 Than Apple; Did It Translate To Market Share?
Apple Gets Litigious: Qualcomm The Latest In A String Of Lawsuits
Wall Street Breakfast: A Big Wow For The Dow (Seeking Alpha)

Previewing Apple Inc. (NASDAQ: AAPL)'s fiscal year fourth-quarter results, Deutsche Bank said investors' expectations have moved higher, reflecting a beat and a potential raise.

Apple is due to release its fiscal fourth-quarter results on October 25.

Deutsche Bank attributed the upbeat expectations for iPhones on promotions by all four U.S. carriers in September, which drove stronger-than-expected initial iPhone 7 orders, which pulled demand forward.

Consequently, analyst Sherri Scribner raised the firm's iPhone estimate for the quarter to 46 million, premised on increased build plans at Asian suppliers and a boost from short-lived U.S. carrier promotions. The calendar year fourth-quarter estimate is pitched at 75 million.

Related Link: Pandora Vs. Spotify Vs. Apple Music Vs. Soundcloud: Which Is Better For Artists?

Deutsche Bank believes positive data points are already reflected in share price, which is up over 18 percent in the past three months. Although the SAMSUNG ELECTRONIC KRW5000 (OTC: SSNLF) Galaxy Note recall has helped sentiment toward Apple, the firm does not think Galaxy Note buyers are a significant opportunity for Apple, given the different ecosystem.

The firm expects positive iPhone comments to continue in the next one to two months, supporting shares into the year-end. Longer-term, the firm remains Market Weight on Apple, due to slowing smartphone growth and elongating refresh cycles in mature markets.

Premised on higher iPhone assumptions, the firm raised its 2017 and 2018 earnings per share estimate and also upped its price target to $108 from $105.

Deutsche Bank has a Hold rating on the shares of Apple.

At time of writing, Apple's shares were up 0.42 percent at $118.04.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for AAPL

Jan 2017BarclaysDowngradesOverweightEqual-Weight
Jan 2017OTR GlobalDowngradesNegative
Jan 2017GuggenheimInitiates Coverage OnBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings News Price Target Previews Reiteration Analyst Ratings Tech Best of Benzinga


Related Articles (AAPL + SSNLF)

View Comments and Join the Discussion!