Apple Inc (NASDAQ:AAPL) investors will likely see upside in iPhone revenues when the consumer electronics giant reports its third-quarter 2023 financial results after the closing bell on August 3, according to Wedbush analysts.
In a note to clients, they maintained their ‘Outperform’ rating on the stock and 12-month target price of $220 per share, while stating that the iPhone maker is gaining market share in China.
“We believe iPhone units based on a clear uptick in demand around the key China region this quarter could show some upside despite the choppy macro as higher ASPs (average selling prices) and overall upgrade activity on iPhone Pro 14 carry the day for Cook & Co,” the analysts wrote.
With the iPhone 15 launch slated for mid-September, analysts at Wedbush also believe Apple's services business should reaccelerate over the coming quarters back to a “double digits trajectory”, as another 100 million plus new iPhone users have been added on the Apple ecosystem over the past 18 months.
“We believe overall the Services business is worth $1.3 trillion to $1.4 trillion for Apple's sum- of-the parts valuation and remains an underappreciated asset by the Street with many naysayers still not believers in the 'new Apple valuation' reset in motion,” they added.
Shares of Apple eased 1.5% to $192.74 in mid-afternoon trading on Wednesday and have gained 54% year to date.
Contact Sean at sean@proactiveinvestors.com