By Senad Karaahmetovic
Credit Suisse (SIX:CSGN) analysts reiterated an Outperform rating on Apple (NASDAQ:AAPL) ahead of the earnings report that is due in 2 weeks.
The analysts raised FQ4 revenue estimates by 1% and EPS by $0.04 to push both above consensus. Still, the price target drops to $190 from $201 per share to reflect lowered F2023 and F2024 estimates amid a weaker consumer backdrop.
The analysts argue that Apple will benefit from the strong demand for iPhone 14 and mix shift to Pro and Pro Max models. Moreover, raised iPhone prices in some regions will also help support margins.
“We believe installment plans (available in most geos) will help mitigate the higher prices on customers,” they wrote in a client note.
The analysts also noted likely improving supply chain situation, which should benefit Macs, but also gross margins. As a result, they expect lower NAND and DRAM prices to act as a tailwind for Apple in F2023.
Apple shares are down 3.1% in pre-open on yet another red-hot inflation report in the U.S.