Apple: KeyBanc long-term positive as growth story will ‘continue to play out’

KeyBanc Capital Markets analysts reiterated an Overweight rating and $180 per share price target on Apple (NASDAQ:) in a note Monday, stating that they are cautious in the near term.

The firm maintained its below-consensus total hardware revenue estimates for the tech powerhouse, stating that key first look data (KFLD) “shows Indexed Spending for April was -18% m/m vs. the three-year average of +4% m/m (including +48% m/m rate in 2020, excluding which results were generally in line with historical trends).”

“Our F3Q est. comes out below consensus: we’re looking for total hardware revenue growth of -5.3% y/y vs. consensus of -3.7% y/y, vs. F2Q reported of -4.6% y/y and AAPL’s total revenue guide for F3Q growth to be consistent with F2Q,” they wrote.

“Our ests are below consensus for iPhone/Mac as we worry about U.S. upgrade rates being lower, creating more pressure NT than growth in Int’l, and PC sales remain weak.”

Despite the firm’s near-term concerns, the analysts said they are long-term positive as they believe the user growth and capital return story will continue to play out.