AAPL - BULLISH SCENARIOKeyBanc raised its price target for Apple (NASDAQ:AAPL) to $200 from $180 and maintained an Overweight rating on the stock. However, analysts expressed neutrality in the near term despite their positive long-term outlook.
They reiterated their below-consensus revenue estimates for Apple's hardware in the third quarter of 2023. The analysts highlighted two concerns. First, Key first look data (Apple direct channel) showed strong spending in June compared to historical averages, but a quarter-on-quarter decline worse than historical averages. Second, KeyBanc expected softness in Apple's indirect channel (U.S. Carriers) due to historically low upgrade rates in the United States.
The analysts concluded by stating that for Apple to achieve favorable results, international sales must compensate for underperforming U.S. sales. Their price target is set at $200, based on a multiple of 20.8x their 2024 adjusted EBITDA estimates.
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