Apple Appeared to Outperform Peers in Q3-Rosenblatt
2022.07.26 22:06
Apple Appeared to Outperform Peers in Q3-Rosenblatt – Budrigannews.com
A Rosenblatt Securities analyst told investors in a note on Tuesday that Apple (NASDAQ:AAPL) likely outperformed its peers in the third quarter.
The analyst currently has a Neutral rating and a $168 per share price target on the stock. He explained in the note that their checks of industry data ahead of Apple’s third-quarter earnings report aftermarket Thursday, show a company out-performing peers and boding well in a difficult environment, suggesting the firm’s slightly above FactSet consensus estimates are beatable.
“Apple’s big moves during the quarter in sports (striking a deal to be the lead broadcaster of Major League Soccer, and reportedly in the lead to pick up Sunday NFL Ticket) seem brand-driven and disruptive, raising questions of how the economics work, which perhaps suggests confidence in Cupertino,” wrote the analyst.
Apple has been moving into the live sports streaming market with deals in place with the MLS and MLB.
Speaking on demand for Apple products in China, which continues to be impacted by Covid-related lockdowns, the analyst said they had concerns that never-ending zero Covid would disrupt demand in China and also present production challenges.
However, “monthly unit shipment data from the China Academy of Information and Communications Technology shows international mobile phone units (mainly Apple) rebounding in the June quarter, rising 24% Y/Y, versus a 24% decline for local brands.”
There hasn’t always been a great correlation historically between Apple’s China revenues and this shipment data. But it’s still a supportive backdrop,” added the analyst.
