With Apple (NASDAQ:AAPL) shares up 26% over the past three months versus the 10% S&P 500 gain, JPMorgan believes “investors looking for further upside have to focus on the longer-term earnings trajectory rather than expect near-term upside.”
Analyst Samik Chatterjee sees the likelihood of a FQ3 beat and a strong replacement cycle with the upcoming 5G iPhones as already priced in.
The firm reiterates the Overweight rating its held since 2017, still seeing ample upside to shares from the 5G iPhone, Services potential, and Apple’s “unappreciated leverage” to work from home trends.
For the FQ3 report on July 30, JPMorgan forecasts $49B in revenue and $1.92 EPS. Consensus estimates see $52.24B in revenue and $2.06 EPS.
JPMorgan maintains a $425 price target on Apple and removes the tech giant from its Analyst Focus List. Apple had been added to the AFL in May.
Deeper dive: Apple: Say Goodbye To $400 by SA’s BOOX Research.