Wall Street Still Loves Apple

Apple Inc. AAPL stock jumped 2 percent on Friday to hit new all-time highs after the company reported a fiscal fourth-quarter earnings beat and issued guidance that impressed the market. A number of Wall Street analysts weighed in on Apple following the report.

Here’s a rundown of what they had to say.

iPhone, iPhone, iPhone

William Blair analyst Anil Doradla said the best part about Apple’s huge quarter is that the iPhone X cycle has yet to begin. “Perhaps the biggest takeaway was the strength across multiple product lines and geographies beyond the iPhone,” Doradla said.

Bernstein analyst Toni Sacconaghi said Apple executives were a bit coy in discussing iPhone demand than on previous earnings calls. “The key question is whether this reflects any potential softness in demand, or prudence in not proclaiming a strong cycle after 6 days of visibility,” Sacconaghi wrote.

Related Link: Apple Gets Upgrade Thanks To China, Holidays

BMO analyst Tim Long said Apple’s December quarter guidance did not disappoint. “We expect volumes to remain constrained into at least the March quarter, but our outlook for the full year remains positive, with volumes of 247M, up 14%,” Long wrote.

Loop Capital Markets analyst Ananda Baruah said Apple will ride the current iPhone cycle to earnings beats in the next couple of quarters. “We believe that March could end up being the largest beat relative to Street estimates for this iPhone cycle,” Baruah said.

Baird analyst William Power said Apple’s Services segment was particularly strong. “Services revenue of $7.9 billion in FQ4'17, excluding a one-time benefit, grew 24.3% YOY and is expected to double over the next four years,” Power wrote.

Giddy Up

Loup Ventures' Gene Munster said Apple CEO Tim Cook has reason to be giddy. “We believe over the next two quarters the story continues to improve as the iPhone X inches ASPs higher (we’re modeling for $740 iPhone ASP in FY18, versus the Street which was at $722 prior to tonight’s results),” Munster wrote.

Tigress Financial Partners analyst Ivan Feinseth said Apple continued to defy its detractors. “I have been recommending everyone ignore the noise, opinions, and negativity around Apple,” Feinseth wrote.

Deutsche Bank analyst Sherri Scribner said the main event is yet to come for Apple Investors. “While the results were solid, we believe investors' main focus is on whether Apple can sell a $1,000 premium phone in significant quantities, something we won't have a good sense of until later this year, at the earliest,” Scribner wrote.

Citi analyst Jim Suva said strength in older and lower-priced iPhone model sales was particularly impressive. “This is important because most of these sales are to new Apple users which in the future will likely purchase apps and eventually upgrade to newer models,” Suva wrote.

Canaccord Genuity analyst Michael Walkley said China growth was also impressive. “Greater China’s 12% YoY growth represented a significant improvement with broad based strength across the ecosystem of products including strong Mac sales,” Walkley wrote.

Related Link: Traders Weighing Critical Questions Ahead Of Apple Earnings

Ratings And Price Targets

Most of Wall Street remains bullish on Apple stock, even after its 48 percent year-to-date gain. However, some analysts are more bullish than others:

  • William Blair has an Outperform rating and no target.
  • Bernstein has an Outperform rating and $195 target.
  • BMO has an Outperform rating and $195 target.
  • Loop has a Buy rating and $200 target.
  • Baird has an Outperform rating and $190 target.
  • Deutsche Bank has a Hold rating and $152 target.
  • Citi has a Buy rating and $200 target.
  • Canaccord Genuity has a Buy rating and $195 target.
Posted In: Ananda BaruahAnil DoradlaBairdBernsteinCanaccord GenuityCitiDeutsche BankJim SuvaLoop Capital MarketsMichael WalkleySherri ScribnerToni SacconaghiWilliam BlairWilliam PowerAnalyst ColorEarningsNewsPrice TargetTop StoriesAnalyst RatingsTrading Ideas