UBS analyst Timothy Arcuri upped his price target on Apple shares to $275 from $230 today on higher demand for iPhone ahead of Apple’s earnings report Tuesday.
Arcuri said that third-data points look encouraging in China and suggest that Apple showed better seasonal strength there in September than it did a year ago. “More importantly, there has been growth in two of the last three months following declines for two and a half years,” he wrote.
In general, Arcuri sees iPhone 11 estimates as being too low, writing that despite the lack of high-profile new features, Apple looks well positioned to drive upgrades given a relatively high portion of iPhone 7 and iPhone 7+ devices that are still in use.
“Build plans for 2019 iPhones have been muted, but recent data suggests a slight uptick given higher demand,” he wrote.
MacDailyNews Note: Apple will report Q419 earnings on Wednesday, October 30th. As usual, we will have the results here right around 4:30pm Eastern and, following that, live notes for Apple’s conference call beginning at 5pm Eastern.