This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXMPEDA20BR_M.jpg
UBS analysts reiterated a Buy rating and a $185 per share price target on Apple (NASDAQ:AAPL) shares.
The latest data that tracks iPhone availability globally shows the iPhone demand remains strong and tracking flat on a YoY basis. As that was the case in the previous weeks, Apple is seeing robust demand for iPhone 14 Pro and Max, and less so for the basic iPhone 14 model.
“The stronger demand at the high-end is largely offset at the low-end as we expected based on our checks and analysis of procurement patterns. Moreover, the ASP tailwind from the Pro and Pro Max on iPhone revenue and the extra week in the Sept quarter (14 weeks vs 13 weeks last year) will likely be offset by the strength in the US dollar,” the analysts wrote in a client note.
Moreover, they estimate that Forex is acting as an 800 bps YoY headwind for Apple, up by 500 bps from the June quarter. All-in-all, UBS projects iPhone revenue will likely “come in line with our estimate of $41.8B below consensus $42.2B but is largely expected by the market.”
Apple shares are down almost 1% in pre-open Thursday after closing at $146.40 yesterday.
