Analyst Ananda Baruah likes the momentum of Apple’s subscription growth.
Loop Capital analyst Ananda Baruah raised his price target on shares of Apple Inc. to $210 from $195 on Friday, writing that the stock seems well positioned for the rest of the year. “Specifically, we believe the combination of ongoing Services momentum (which we believe to be structural) and the introduction of a lower-ASP [average-selling-price] LCD-based iPhone X (upon the September launch of iPhone X Version 2, or Xv2) can provide tailwind to both revenue and iPhone X units that wasn’t present for the iPhone Xv1 launch,” Baruah wrote. He is upbeat about Apple’s ability to retain a favorable mix of high-priced phones in the second half of the calendar year.
My take: I’ve asked Baruah for the note. What we have here is all stuff we’ve heard before. Benzinga highlighted this detail:
Subscription growth remains strong and was up 100 million year-over-year in the June quarter to 270 million, according to Loop.
Apple hasn’t actually shared its June quarter subscription numbers yet. A 30 million pop from the 240 million Apple reported for March would be impressive, if true.