Investment bank Cowen has raised its price target to $200, from $180, following Apple’s all-time record-setting Q122 (holiday 2021) earnings results.
Cowen lead analyst Krish Sankar writes that Apple delivered strong December quarter upside that beat Wall Street expectations despite an estimated $6 billion revenue hit from ongoing chip shortages and supply constraints.
“Shortages have yet to fully abate, still AAPL’s solid supply chain execution is able to deliver near-term upside in hardware shipments,” Sankar writes. “Coupled with better than expected Services growth and margins, we think AAPL effectively delivered a beat & raise relative to market sentiment.”
Sankar reiterates his Outperform rating for Apple and raises his 12-month price target for the company to $200, up from $180. The new target is based on a 24x earnings multiple on Apple’s core business and a 40x multiple on Services, leading to a blended price-to-earnings (P/E) multiple of 31x on Cowen’s 2022 earnings-per-share estimate of $6.38.
MacDailyNews Take: That’s at least the fifth $200 price target posted for Apple in last month or so (Citi, J.P. Morgan, Bank of America, Morgan Stanley, Wedbush).
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