Cowen raises Apple target to $135, sees 80M iPhones shipping this holidayAhead of Apple's September quarter earnings report, investment firm Cowen and Company on Monday increased its price target to $135, with sales forecasts higher than consensus on Wall Street.
Analyst Timothy Arcuri believes Apple this week will report sales of 50 million iPhones and 9.5 million iPads, on its way to yet another record quarter. Revenue for the quarter is expected to be around $51.5 billion, with $1.87 earnings per share.
Looking ahead to the December frame, Arcuri sees Apple shipping between 78 million and 80 million iPhones during the quarter, which would be yet another record for the company. He has increased his projected revenues for the December quarter to $80.1 billion, with an earnings per share estimate of $3.34.
Arcuri sees iPhone sales continuing to grow on strong demand from China, where the iPhone 6s launched on day-one. He also expects ongoing momentum from users switching from Android handsets, and also demand upside from the new Apple iPhone Upgrade Program.
And in 2016, Arcuri believes Apple could help boost sales mid-cycle with a refreshed, smaller 4-inch iPhone. Arcuri's supply chain sources have indicated that the company has worked on a new 4-inch handset, serving as a successor to the iPhone 5s.
Despite increasing his price target, Arcuri has maintained a "market perform" rating on shares of AAPL. He said on Monday that the company's stock has "broadly entered a holding pattern, albeit with upward bias."
Apple will report the results of its September quarter after markets close on Tuesday. AppleInsider will have full coverage.