Bank of America analyst Wamsi Mohan previewed Apple's (NASDAQ:AAPL) FQ2 earnings that are due next Thursday.
The analyst sees risk to both EPS and revenue estimates with his rev/EPS forecast for F2Q sitting at $92bn/$1.36 vs. Street at $93.9bn/$1.43, respectively.
“Heading into the quarter, we see some near-term risk from COVID-related shutdowns in China, lower App Store sales and FX,” Mohan said in a client note.
However, the analyst remains more positive on AAPL in the long-term as he believes Apple shares “have more room to rerate higher as we see significant catalysts including the opportunity to better monetize its installed base, advertising related revenue growth, opportunity in Augmented/Virtual Reality and long-term growth in Services.”
Moreover, Mohan also expects Apple to announce another large buyback authorization, of more than $70bn, and raise the dividend (BofA models a 5% increase).
BofA rates Apple with a Buy rating and a $215.00 per share price target.
By Senad Karaahmetovic