Apple (AAPL) was added to Evercore’s tactical outperform list as the investment firm expects near-term upside, going into the company’s upcoming earnings report.
Shares fell 1.4% in premarket trading.
“We continue to have a positive stance on shares of AAPL heading into [the December quarter] print on Jan. 29th, as our checks suggest that there’s near-term upside to street estimates, driven by strong iPhone demand and a minimal memory cost headwind (through the Mar-qtr),” analyst Amit Daryanani wrote in a note to clients. “For [the December quarter] (Q1’FY26), we’re modeling revs/EPS of $140.5B/2.71, ahead of [Wall Street] at $137.4B/2.67. Our checks, coupled with industry data points, suggest near-term upside to AAPL estimates driven by robust iPhone demand + minimal memory cost headwind. On iPhone demand, sales have skewed more towards higher-end models, which are positive for ASPs relative to where street estimates are at.”
Daryanani, who has an Outperform rating and $330 price target on Apple, said he expects iPhone revenue to be up 17% year-over-year and Services revenue to be up 13% year-over-year. He also said the tech titan is “more insulated” than others when it comes to rising memory prices, given it has signed long-term agreements to secure NAND supply and pricing.
Apple is set to report fiscal first-quarter results on Jan. 29. A consensus of analysts expects the company to earn $2.67 per share on $138.5B in revenue.