Apple ‘should work higher from here,’ says Evercore ISI

Evercore ISI analyst Amit Daryanani says Apple reported better than expected numbers and “crucially their commentary was much better than buyside fears,” so the firm contends that the stock “should work higher from here.” For the June-end quarter, Apple expects to see modest revenue growth year-over-year with services and iPads growing double digits, which implies that iPhones should be flat to decline modestly in the quarter, the analyst noted. With June-quarter guidance behind it, the firm thinks a set of positive catalysts should help drive the stock higher into WWDC, where Apple will give details around its AI strategy across both hardware and services, says Evercore, which thinks “Apple can deliver AI upside without the AI capex we see elsewhere.” The firm maintains an Outperform rating and $220 price target on Apple, which it calls a “Top Pick.”