Analysts hike Apple stock targets ahead of FQ3 results

At least two Wall Street analysts raised their Apple (NASDAQ:) price targets as the company prepares results for its fiscal third quarter after the market close on Thursday, August 3.

Deutsche Bank analysts hiked the price target by $30 to $210 per share and expect FQ3 and FQ4 results and guidance, respectively, to be “in line with or slightly above current DB/Street estimates, as our recent checks and third-party data suggest upside to iPhone, Mac and Services.”

“While the recovery in global smartphone demand is below expectations, it appears that the premium market (and hence Apple) is less impacted. In addition, the build ahead of the new iPhone launch appears to be on track, and we see the potential for iPhone units to grow y/y in CY23 (vs. Street expectations of down ~5% y/y). We also believe there is upside potential to EPS from FX (that has negatively impacted revenue growth and gross margins) and component pricing (given AAPL built strategic inventory last quarter),” they said in a note.

While some of these upside catalysts are already priced into the AAPL stock, the analysts continue to see further upside.

“Despite higher valuation, we continue to view AAPL favorably given its high quality of earnings and strong balance sheet,” they concluded.

Similarly, Wells Fargo analysts also bumped the PT to $225 per share as they expect the Cupertino-based titan to report better-than-expected EPS figures.

“We think Apple’s services growth will reaccelerate in 2H2023 (e.g., Data.AI est. iOS spend +6% in 1H23). More importantly, recent comments made by Bob Iger (Disney CEO) regarding ESPN moving to DTC amid an accelerating shift away from linear — a move that will include ‘strategic partners’ — has left investors very interested in Apple TV+ expansion in sports and/or overall,” they wrote.

Apple shares are up 0.7% in premarket Monday after closing at $191.94 on Friday.