From a note to clients by Royal Bank of Canada analyst Amit Daryanani that landed in my inbox Thursday:
We think Sep-qtr ASPs should witness y/y uptick due to increase in base price of iPhone 8 vs iPhone 7, higher memory mix and broader ASP increase across the portfolio. However, ASP could be offset by lower units as potential buyers stay on sidelines due to timing of iPhone X launch. For Dec-qtr, given iPhone X launch timing, we think Dec-qtr street estimates could be too high (RBC iPhone units at 80M vs. street @ 86M). However, we think AAPL BULL thesis remains intact as we see host of tailwinds:
1) Gross-margin upside given ASPs and mix, along with FX benefit partly offset by NAND pricing,
2) Services growth and content narrative,
3) China revenue trajectory, &
4) potential cash repatriation benefits.
Overall, we think AAPL stock trends higher as higher ASPs and staggered unit uptick will make this a multiyear cycle vs. one year supercycle.
Click to enlarge.
Daryanani maintains his Overweight rating and $180 price target.
My take: More sell-side cheerleading.