Apple (AAPL) 06 (Aug 23 - Dec 26)

[behappyalways]

Apple Rises After Shocking China Sales Beat Offsets US Revenue Miss
https://www.zerohedge.com/markets/apple ... venue-miss

[winston]

not vested

Apple Inc - Stock Analyst Research
Target Price* 260.00
Recommendation NEUTRAL

Apple Inc. - Booming iPhone 17 VS soaring memory costs

1Q26 revenue and PATMI were within our expectations.

Revenue grew 16% YoY, fastest growth in four years, mainly driven by growth in iPhone (+23% YoY) and China market (+38% YoY).

1Q26 revenue/PATMI were at 31%/34% of our FY26e forecasts.

Demand for the iPhone 17 lineup remains strong, with current demand outpacing supply.

Management guided 2Q26e revenue growth of 13–16% YoY, supported by continued iPhone sales momentum. Rising memory costs are expected to become more pronounced in the coming quarters, posing a margin headwind in the long run.

We raise our FY26e revenue and PATMI assumption by 2% and 3%, respectively, to account for the strong growth in iPhone 17.

We have also increased our terminal growth rate from 3.0% to 3.5% to reflect the long-term monetization potential from AAPL’s collaboration with Gemini, which strengthens Apple Intelligence and supports sustained ecosystem engagement.

We upgrade our recommendation from REDUCE to NEUTRAL, raising the DCF target price to US$260 (prev. US$230). WACC of 6.5% remains unchanged.

We remain cautious on AAPL, as the stock is still in a “prove-it” phase, particularly at a ~30.7x forward FY26 P/E. Ultimately, AAPL’s ability to sustain product-led growth and execute a successful Siri rollout will be critical to underpinning its current valuation.

Source: Phillips

https://www.poems.com.sg/stock-research/AAPL/