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Investing.com - KeyBanc Capital Markets analyst Brandon Nispel reiterated a Sector Weight rating on Apple (NASDAQ:AAPL), the $3.9 trillion market cap technology giant trading near its 52-week high, following the firm’s second Consumer iPhone survey. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The survey revealed healthy iPhone 17 demand with a continued shift toward higher-priced Pro and Pro Max models, which could drive average selling price (ASP) increases for the company. This trend could further boost Apple’s already impressive $408.62 billion in trailing twelve-month revenue.
KeyBanc’s research indicated virtually no consumer demand for the iPhone Air model and limited willingness to pay for a foldable iPhone, while also noting declining consumer interest in AI features.
Based on these findings, KeyBanc expects Apple to likely beat fiscal fourth-quarter iPhone revenue estimates and meet first-quarter projections, supported initially by stronger unit sales followed by ASP increases.
The firm believes higher ASPs from the Pro model price increases will positively impact Apple’s revenue, though this may be partially offset by higher costs affecting gross margins, while any future foldable device would likely see limited unit volumes below 10 million. With earnings scheduled for October 30, investors can access comprehensive analysis and 15+ additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Apple is gearing up for its fiscal fourth-quarter earnings report, with significant attention on its revenue and earnings projections. Goldman Sachs has raised its price target for Apple to $279, maintaining a Buy rating, as they expect the company to surpass revenue and earnings estimates due to strong iPhone sales and a 10% year-over-year growth, exceeding the 8% consensus forecast. Mac sales are also projected to grow by 12% year-over-year. Meanwhile, Wedbush has reiterated its Outperform rating with a $310 price target, anticipating Apple will exceed Wall Street’s revenue estimate of approximately $102 billion, bolstered by the iPhone 17’s early performance and growth in services.
In a strategic shift, Apple is reportedly cutting production for the iPhone Air while increasing manufacturing for other iPhone 17 models, as noted by Nikkei. However, the company faces delays in its foldable iPad development, with potential launch pushed to 2029 or later due to engineering challenges, according to Bloomberg. KeyBanc Capital Markets has maintained a Sector Weight rating on Apple, highlighting a 17% month-over-month increase in September hardware spending, though it remains down 15% year-over-year. These developments come as Apple continues to navigate production adjustments and expansion into new product categories.
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