Shares of Apple (AAPL) – Get Report were higher Tuesday after analysts at UBS raised estimates for the company ahead of its earnings report scheduled for next week.
The company confirmed a buy recommendation for Apple and raised its price target from $155 to $166 per share.
Apple shares gained 2.2% to $145.64 at last check. On July 15, the stock hit a 52-week high of $150.
Strong iPhone sales in a quarter where sales are seasonally lower led to the company’s updated outlook. The forecast also comes in light of headwinds in the supply chain.
Aggressive carrier promotions in the US and strength in China should push iPhone units to at least 44 million [in the June quarter], up nearly 15% year-over-year and about 5% above our previous forecast,” said analyst David Vogt.
As a result, the company expects iPhone sales to rise 12% year over year to 85 million in the second half of the year, driven by the launch of the next phone in September.
The company also raised its forecast of the average sales price for June by 2% to $825.
For the year, UBS expects Apple to sell 227 million iPhones, up from earlier estimates of 225 million. The company also raised its estimate for 2022 to 225 million units sold from 220 million.
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Analysts at UBS have raised their revenue and earnings estimates for California tech giant Cupertino. The new estimates: $1.01 per share in earnings on $74.7 billion in revenue, up from the previous view of 95 cents per share on $71.3 billion in revenue.
Analysts polled by FactSet expect earnings of $1.01 per share on revenue of $73.1 billion.