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The investment bank also maintained its below-consensus F1Q24 hardware revenue estimates for Apple, with its key first-look data showing indexed spending down 5% month-on-month in November, below the 3-year average of +11%.
“QTD, we’ve seen back-to-back m/m declines, which appear negative entering Holiday shopping,” the analysts commented. “Overall, our data is telling us we should expect below avg. growth for F1Q24.”
“Although October benefited from timing around iPhone, we would have thought November would be better given a push in timing around Mac to November and Black Friday shopping,” they added.
The analysts concluded: “With AAPL trading at 19.3x ’25 adj. EBITDA, vs. the 3-year, 10-year, and peer averages at 18.7x, 12.0x, and 14.8x, respectively, we find AAPL to be expensive.”
