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Sales of 53M iPhones in June quarter predicted to help propel Apple stock to $170, Brean Capital says

Apple's June quarter will come in higher than most on Wall Street expect, Brean Capital told investors on Monday, revealing it expects the company to have sold as many as 53 million iPhones in the three-month period.




Analyst Ananda Baruah issued a research note on Tuesday, a copy of which was provided to AppleInsider, in which he reiterated his stance that Wall Street forecasts for Apple are "materially low" through 2017.

While market projections call for Apple to have shipped between 48 million and 50 million iPhones in the June quarter, Baruah believes the company likely shipped between 52 million and 53 million. Apple's implied unit guidance was estimated at around 49 million.

Baruah's research also suggests that the share of sales for the higher-priced iPhone 6 Plus is stronger than the market believes. He sees this driving average selling prices and gross margins higher than anticipated.




For the June quarter, Brean Capital had projected earnings per share of between $1.90 and $2.00, compared to Wall Street average of $1.77. Baruah has called for revenue between $52.5 billion and $53 billion, and gross margins between 40 and 40.3 percent.

Apple will report the results of its June quarter after markets close in the U.S. on July 21. But beyond that, Baruah has high expectations for the second half of calendar 2015 and heading into 2016.

As a result, Brean Capital has maintained a $170 price target for shares of AAPL, accompanied by a "buy" recommendation for investors.

The investment firm kicked off its coverage of Apple stock in April of this year with a $160 price target. Brean Capital's targets were raised higher that same month after Apple's record March quarter impressed investors.