Apple Inc. (NASDAQ:AAPL) has received yet more optimistic remarks from analysts about the iPhone 8 ahead of its 12 September launch.
Analysts at Instinet and Berenberg have joined many investors in saying they expect the new iPhone to be successful and to give its market valuation a boost.
Instinet repeated a ‘buy’ rating and raised its target price to US$185, up 15% on current levels, from US$175.
"Apple is entering the long awaited iPhone supercycle on its front foot, in our view," said Instinet anlayst Jeffrey Kvaal.
Berenberg analysts are also upbeat about the iPhone release, reiterating an ‘outperform’ rating and US$175 price target and saying that it continues to believe Apple offers “attractive risk reward”.
Apple has confirmed it will unveil the latest iPhone at its new California headquarters next Tuesday.
Three new iPhone are expected, including two updated versions of the iPhone 7 and a 10th anniversary premium version that includes facial recognition and an edge-to-edge display.
With a projected US$1,000 price tag, the premium iPhone 8 is likely to boost average selling prices and this is what has pleased many investors. This compares to the US$769 cost of the iPhone 7 Plus.
Berenberg said it thinks the consensus view on average selling prices may be too conservative. The broker said if the iPhone 8 is released at a higher US$1,000 price, it could add 70 cents to its US$11.05 estimate for Apple’s 2018 earnings per share.
Ahead of the iPhone 8 release, Apple has started using pop-up alerts to tease new features coming soon in iOS 11. The features include a switch that prevents users from receiving alerts while driving and an update that allows for users to control everything from Apple TV to Wi-Fi and Bluetooth settings with a swipe up from the bottom of the iPhone's screen.
Apple uses iOS 10 Tips app to start teaching iOS 11 features https://t.co/PSHZMXCI1i przez @AppleInsider
— Marceli K. Król (@PfpEdu) 6 September 2017
Shares in Apple fell 0.45% to US$161.31 each in early US trading.