Evercore ISI reiterates Apple stock Outperform on healthy demand
Evercore ISI reiterated an Outperform rating and $380 price target for Apple (AAPL) after its September quarter results. Revenue was $114.5B, up 12% YoY, with iPhone and Mac sales growing 17.5% and 23.7% respectively. EPS was $2.10, beating estimates. Apple guided December quarter sales growth of 7-10% with lower-than-expected margins. Analysts have mixed reactions to Apple's outlook, with price targets ranging from $250 to $380.
How this was made
The 30-second read
Why it matters
The guidance suggests slower growth and margin compression, likely prompting short-term price weakness.
Market read
Apple’s earnings and guidance are material for market participants; the new target may shift analyst consensus.
What to watch
Memory cost inflation and Siri AI expenses may be temporary; future 2nm chip rollout could improve margins.
Background
Evercore ISI’s reiteration follows Apple’s September quarter earnings release, providing fresh guidance and a new price target.
Ticker impact
Evercore ISI reiterated Outperform and a $380 price target after Apple reported September quarter revenue of $114.5B and EPS $2.10, plus guidance for the December quarter.
potential downside as the market prices in weaker margin guidance and slower services growth
The earnings beat is modest and guidance falls short of expectations, which typically leads to short-term price pressure.
Market effects
Tech hardware and services sectors may see modest pullback as Apple signals slower margin expansion.
U.S. markets could open lower on the tech-heavy index due to Apple’s guidance.
Apple’s size means its guidance can influence global tech sentiment.
Counterpoint
If investors focus on the revenue beat and strong iPhone sales, the stock could rebound despite margin concerns.
Key entities
- companyApple Inc.
U.S. technology giant reporting earnings and guidance.
- analystEvercore ISI
Equity research firm issuing the Outperform rating and $380 target.
