Because Apple Inc. targeting the planned launch of its first 5G-enabled phone later this year, the company only gave a sign of confidence that its hardware is still in high demand during a global pandemic.
Apple shares AAPL,
it hit another record high on Friday, with shares surpassing the $ 400 mark for the first time and finally gaining 10.5% as analysts applauded the company’s “incredibly strong” results. The smartphone giant easily weathered the pandemic in its June quarter, according to a Thursday announcement, with revenue of $ 59.7 billion comfortably hovering above estimates even earlier this year. , before analysts cut forecasts to account for closed stores, weaker budgets and other impacts of COVID-1
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“Apple’s results were surprisingly strong and when you consider that the COVID-19 pandemic is even more impressive,” wrote Citi analyst Jim Suva, who reiterated a buy rating on the stock market and increased its price target up to $ 450 starting at $ 400.
Piper Sandler analyst Harsh Kumar had a similar view.
“Overall, the pandemic appears to have a limited impact on Apple,” he said in a note to customers. “In fact, it may be the case that the Mac and iPad are benefiting greatly because of homework and distance learning trends.”
Mac revenue rose $ 7.1 billion from $ 5.8 billion, while iPad revenue rose to $ 6.6 billion from $ 5 billion.
Kumar included the company’s expectations for a strong high school season this year and raised its price target to $ 450, starting at $ 310, while maintaining an overweight rating on the shares.
RBC Capital Markets analyst Robert Muller wrote that the iPhone SE helped Apple drive a new level for its installed base, contributing to smartphone trends that make it “continue to gain confidence behind Apple’s ability to drive recurring cash flows from its loyal customers. “
Muller is optimistic about smartphone trends over the coming quarters, even when Apple confirmed that its next phone will be delayed “a few weeks” from last year, when it began selling smartphones. its new models in late September. This will drive the upcoming launch of the iPhone at Apple’s next fiscal year, which begins in October.
“We recall that the iPhone X, a much-anticipated factor update, was released in early November and generated a quarterly iPhone quarterly record result,” he wrote. “Despite anticipating a 5G update, Apple expects the iPhone’s recent performance (which exceeded expectations) to continue until next quarter.”
It values stocks with a higher return as it raises its price target to $ 445 from $ 390.
Read: Pandemic? Antitrust? No problem for Big Tech, which racked up $ 200 million in sales anyway
JP Morgan’s Samik Chatterjee wrote that Apple “surprised even bullish expectations when it came to F3Q / C2Q gains barely losing momentum,” and was upset about the tone of management in looking at the current quarter .
“All in all, Apple’s ability as a company in a consumer discretionary product segment to complete the sequential slowdown of the F3Q / C2Q despite the massive disruption speaks to the utility associated by consumers with the products, as well as the momentum of a product cycle, which leads them to be willing to evade the traditional practice of buying from the physical channel when it requires it and leads us to be more optimistic about the next 5G product cycle, ”wrote Chatterjee, who it has an overweight rating on the stock and it hit its price target of up to $ 460 from $ 425.
Chatterjee said Apple also has a “less appreciated business opportunity,” as more people use Macs and iPads for remote work.
“While the strength of the quarter, led by management’s guidance on the last earnings call, was expected, guidelines for unit growth trends to remain in F4Q are likely to surprise investors, as most expected it to be a unique drift. these products, “he wrote.
T. Michael Walkley of Canaccord Genuity also encouraged the company to forecast double-digit growth for all hardware categories except the iPhone in the September quarter, and praised the period’s “explosion” results. of June, while raising its price target to $ 460 from $ 440. and maintaining a purchase rating in stock.
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At least 19 analysts raised their price targets on Apple shares after the report, according to FactSet, and the new average target stands at $ 397.65. Of the 38 analysts tracked by FactSet that cover Apple shares, 26 rate a buy, eight rate a hold and four rate a sale.
Apple plans to make a four-part division for one of its shares, which will affect record shareholders starting Aug. 24. Shares will begin trading on a split basis on August 31st. important for retail investors. Apple said the stock split is intended to make the stock “more accessible to a larger investor base.”
Shares have risen 39% in the past three months as the Dow Jones average DJIA,
has increased by 8%.