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Cowen analyst Krish Sankar said the firm believes Apple will report its June quarter results in line with consensus despite supply shortages.
The analyst, who has an Outperform rating and $200 price target on Apple (NASDAQ:AAPL) shares, said their fieldwork suggests “NT iPhone builds remain stable (46M/51M in Jun/Sep Q),” however, they have lowered their “CY23 unit view on potential macro risks.”
“In our recession scenario analysis, we estimate $5.69/$5.06 EPS assuming HW units are -10%/-20%. AAPL remains a defensive name given strong FCF and capital returns,” wrote Sankar. “We expect AAPL to report Jun ’22 quarter (F3Q) in line with consensus on healthy iPhone and Mac demand and despite ongoing component supply constraints and pandemic lockdowns in China.”
The analyst previously stated that Apple’s revenue could be impacted by $4 billion to $8 billion from the challenges.
However, Cowen is revising its forecasts due to possible near-term improvements in the shortages, strong China demand, and a broader macro slowdown.
“We raise Jun Q iPhone shipment estimate (leads to overall Jun Q revenue +1% Y/Y vs prior -1%) based on recent fieldwork but trim Dec Q and CY23 numbers assuming macro slowing will affect premium smartphone demand.”
