Wedbush analyst Dan Ives said Apple Inc AAPL CEO Tim Cook pulled off a “Top Gun Maverick” type feat for posting strong revenues from China despite COVID-19 shutdowns.
The Apple Analyst: Ives maintained his “outperform” rating on Apple with a 12-month price target of $200.
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The Apple Thesis: Noting the revenues originating from China, Ives wrote in a note seen by Benzinga, “The all-important China region posted revenues of $14.60 billion coming in just below their year-ago performance of $14.76 billion.”
“We view [the Chinese reveue] as a Top Gun Maverick type feat for Cook & Co. given the ongoing COVID shutdown and speaks to the overall demand story seen with Apple.”
Apple posted a revenue of $82.96 billion versus Street estimates of $82.79 billion in the third quarter. The numbers were underpinned by strong iPhone and iPad sales.
Ives said the iPhone revenue of $40.67 billion was the “star of the show” even though there were “fears of a clear miss” due to COVID-19-related shutdowns and macroeconomic headwinds.
“We would characterize this quarter as a major bullish statement on iPhone and iPad demand and Cupertino's ability to navigate a supply chain shortage in an impressive performance,” said the Wedbush analyst.
Ives said Wedbush is walking away from the Apple conference call positive that the Cupertino, California-based tech giant can “navigate this economic storm with the demand and growth story well intact for iPhones and Services front and center.”
Apple Price Action: On Thursday, Apple shares rose 3% in the after-hours trading to $162.02 after closing 0.4% higher at $157.35 in the regular hours, according to data from Benzinga Pro.
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