Jefferies, an investment firm, anticipates that Apple (NASDAQ:AAPL) will continue to serve as a reliable investment option for shareholders, positioning itself as a “source of safety” due to its consistent performance.
As Apple prepares to announce its fiscal third-quarter results on August 3, analyst Andrew Uerkwitz, who has assigned a buy rating to Apple (NASDAQ:AAPL), asserts that despite lacking the excitement associated with cloud or artificial intelligence, the company’s steady growth trajectory remains intact.
In a recent investor note, Uerkwitz describes Apple as the most boring of all buy-rated stocks, highlighting its strength in integrating software services with its hardware to establish a regular replacement cycle. This unique advantage, along with the ability to gradually increase prices and capture market share, forms the foundation of Apple’s moat. The consistency exhibited by Apple is particularly appealing in an uncertain economic climate, making it an attractive investment option.
Uerkwitz, who has raised his per-share price target from $210 to $225, expects Apple (NASDAQ:AAPL) to generate $83.6 billion in revenue for the June quarter, surpassing the Wall Street consensus. The analyst points to the iPhone and services as the primary drivers of the company’s success, acknowledging their significant contributions to its financial performance.
Regarding specific product categories, Uerkwitz predicts that hardware sales will remain relatively flat year-over-year, with the iPhone displaying a similar trend. The iPad is expected to experience some weakness, while the Mac is anticipated to demonstrate strength during this period. Overall, Uerkwitz maintains a positive outlook for the upcoming quarter, characterizing it as a benign period for Apple.
According to a consensus of analysts, Apple (NASDAQ:AAPL) is projected to achieve earnings of $1.19 per share on $81.77 billion in revenue for the quarter.
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Author Faith Yakubu 
