Similar to Morgan Stanley analyst Katy Huberty’s excitement around Apple things to come, Evercore analyst Amit Daryanani is all about the next couple of quarters. Seriously. The next two - June and September. Apple 3.0 ran part of a note he wrote, where in AD Rock pointed to strength in the second half of FY22, given “several product launches” expected.
Closer in sounds like less fun. Advising that investors “consider seasonality,” he seems to think that the Street either is or may be expecting too much from Apple sales this quarter. According to Daryanani, “on average March-qtr sales are down 32% q/q vs. street models calling for a 25% q/q drop currently.” He and his are splitting the difference, looking for a sales drop of 28% from last quarter to this one.
Doing a list of good, bad, bad, good, “key data points” noted by the analyst include:
“Better iPhone availability as demand remained strong and component availability improved”
Apparent deceleration for iPhone in China in the December-quarter… Apple has gained what share it will for now, seems to be his thinking
An anticipated deceleration in Services revenue
Continued strength for Apple wearables, “given high demand for Watch and AirPods through Christmas season”
Dayranani has an “Outperform” rating on Apple shares. Evercore’s price target on the shares is $210.
