Analysts rush to upgrade Apple price targets

Following a blowout all-time record earnings report on Wednesday, analysts on rushed to upgrade their Apple price targets.

Analysts rush to upgrade Apple price targets. Image: Apple Park in Cupertino, California
Apple Park in Cupertino, California

Apple posted all-time record revenue of $111.4 billion, up 21 percent year over year, and quarterly earnings per diluted share of $1.68, up 35 percent.

“Our December quarter business performance was fueled by double-digit growth in each product category, which drove all-time revenue records in each of our geographic segments and an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO, said in a statement. “These results helped us generate record operating cash flow of $38.8 billion. We also returned over $30 billion to shareholders during the quarter as we maintain our target of reaching a net cash neutral position over time.”

Apple Q121 results:

• Revenue: $111.4 billion (vs. $91.819 YOY)
• EPS: $1.68 (vs. $1.25 YOY)
• iPhone: $65.597 (vs. $55.957 YOY)
• Services: $15.761 (vs. $12.715 YOY)
• Wearables, Home and Accessories revenue: $12.971 (vs. $10.010 YOY)
• Mac: $8.675 (vs. $7.160 YOY)
• iPad: $8.435 (vs. $5.977 YOY)

Changes to Apple price targets:

• Needham: To $170 from $140

• D.A. Davidson: To $167 from $133

• Wells Fargo: To $160 from $155

• Deutsche Bank: To $160 from $140

• Morgan Stanley: To $164 from $152

• Credit Suisse: To $140 from $120

MacDailyNews Take: May these new Apple price targets awaken investors with aplomb!

7 Comments

  1. It is enough to drive one batty… I’ve been long AAPL for many years – it’s in the ol IRA so no need to mess with it – yet with those stellar numbers, it’s amazing that it drops – but as with all of their financial announcements, the stock rises before, and then drops after… the market is simply unhinged from reality.

    1. It frequently does drop immediately after financial reports, but usually climbs back rapidly. There is often a little lift as the qualifying date for dividend payments approaches.

      Bottom line is that you must know there’s nothing to worry about with regard to your AAPL.

    2. Not at all. Very normal to rise on rumor/anticipation, and fall on actual news. Think short term traders who have made their little gain. However, for long term Apple investors, this is great stuff. Exactly what we want to see: All products with strong consumer demand.

      1. Exactly. I would expect the dip created by profit taking to be very temporary, maybe finishing today. After that, it will be generally rising until dividends are due in February where there is likely to be another dip. After that, it’s anybody’s guess, but I would expect a general upward trend with occasional bursts of silliness. Business as usual for AAPL.

  2. I suppose Apple doesn’t always respond to earnings the way most stocks do, but it’s OK for Apple to fall in share price as long as there’s a buyback program in place. Apple can eliminate more shares at a discounted price which I suppose is useful for shareholders. It’s not as though Apple’s share price is going to stay down forever, so think of this dip as a good time to buy if you have confidence in Apple and know that price targets are being upwardly revised.

    I have seen this happen before with Apple, but usually there is some miss in expectations. I don’t think Apple missed at all for the quarter, so I didn’t expect even a slight drop in share price. It doesn’t matter as I’m a long-term shareholder, but I was a bit surprised. This little drop in share price amounts to nothing so I’m relieved.

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