Raises price target to $117 from $115.
From RBC analyst Amit Daryanani’s note to clients Thursday:
We are adjusting our Dec-qtr iPhone units higher given our understanding that FQ1 will have an extra week (14 week quarter vs. 13 normally). We estimate an extra week will result in ~5-6M incremental iPhone units for Dec-qtr and should enable a path towards iPhone unit growth… We think Street models do not reflect the extra week in Dec-qtr, which could provide a source of guidance upside following Sept-qtr results.
For as long as I can remember, Apple has closed its books on the last Saturday of each quarter, which for fiscal Q4 2016 falls on Sept. 24 and for fiscal Q1 2017 on Dec. 31. The extra week, Daryanani points out, is a mixed blessing. What makes December look a little better makes the March quarter-over-quarter comparison look a little worse.