Evercore ISI sustained its optimistic stance on Apple Inc. (NASDAQ:AAPL), maintaining both an Outperform rating and a $250.00 price target for the tech giant's stock. The firm's analysis focused on the iPhone 16 and 16 Pro models, which have been available for pre-order since September 13th. It was observed that while lead times for the Pro and Pro Max models have remained relatively unchanged, the delivery windows for the standard iPhone 16 and 16 Plus versions have decreased.
According to the firm, the delivery times for the iPhone 16 Pro and Pro Max in the United States have shifted slightly. The Pro model now has a delivery time of 17 days, a reduction of 2 days from the previous week, while the Pro Max maintains a 24-day delivery schedule.
These times are notably shorter than the 35-day wait customers experienced last year. In Japan, the delivery times have also decreased, with the Pro and Pro Max models now arriving in 15 and 25 days, respectively, down from 19 and 27 days just a week prior and significantly less than the 32-day period from the previous year.
Lead times in China have remained consistent for the Pro and Pro Max at 22 days, which has not changed from the previous week. However, this is an increase from last year's 18-day lead time for the Pro model, marking the only region where a longer wait time has been recorded compared to last year. In contrast, the United Kingdom and Germany have seen stable lead times for the Pro models, which are currently 7 to 15 days shorter than the same period last year.
The firm's commentary highlighted that the lead times for the premium iPhone models are holding up well compared to the previous week, yet they still fall below the levels seen in the previous year.
Apple Inc. has seen a mix of analyst outlooks following the launch of the iPhone 16. Evercore ISI has maintained an Outperform rating on the company's stock, with a $250 price target, citing robust iPhone purchasing intentions and a rise in average selling price driven by a shift towards the Pro Max model.
BofA Securities has also retained a Buy rating on Apple, attributing this to reduced shipping times for the new iPhone models, while Barclays has reiterated an underweight rating, suggesting softer demand for the iPhone 16. Goldman Sachs also maintains a Buy rating, citing shorter delivery lead times for the new iPhone 16.
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Lastly, despite a mixed picture in the Chinese market where Apple saw a year-over-year decline in shipments, Evercore ISI has maintained its positive stance on Apple Inc., suggesting that potential losses in market share there could be compensated by growth in developing markets.
InvestingPro Insights
To complement Evercore ISI's analysis of Apple's iPhone 16 sales trends, InvestingPro data offers additional context on the company's financial performance and market position. Apple's market capitalization stands at an impressive $3.47 trillion, underscoring its status as one of the world's most valuable companies. The tech giant's P/E ratio of 34.52 suggests that investors are willing to pay a premium for its shares, likely due to expectations of continued growth and innovation in products like the iPhone 16 series.
InvestingPro Tips highlight Apple's strong market position and financial health. The company has raised its dividend for 12 consecutive years, demonstrating a commitment to shareholder returns. This is particularly noteworthy given the focus on iPhone sales, as it indicates Apple's ability to maintain profitability and cash flow even as it navigates product cycles and market dynamics.
Another relevant InvestingPro Tip notes that Apple is trading near its 52-week high, which aligns with the positive outlook maintained by Evercore ISI. This could suggest that the market is optimistic about Apple's future performance, including the reception of the new iPhone models discussed in the article.
For investors seeking a deeper understanding of Apple's financial metrics and growth potential, InvestingPro offers 14 additional tips that could provide valuable insights into the company's prospects.
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