Evercore ISI has reaffirmed its bullish stance on Apple Inc., maintaining an “Outperform” rating and a price target of $250.00. This positive assessment is largely driven by the continued strength of Apple’s App Store, which reported a 12% increase in revenue during the month of August.
This marks a slight improvement over the 11% growth observed in July, despite more challenging comparisons from the previous year.
The recent stability in App Store revenues, particularly from China and Japan, has been attributed to new gaming titles driving consumer engagement. Notably, the European Union’s App Store revenue surged by 25% year-over-year in August and even experienced a 4% quarter-over-quarter increase, despite changes prompted by the EU’s Digital Markets Act (DMA).
China’s revenue growth, standing at 9%, surpassed expectations which were set for mid-single digit increases.
Evercore ISI suggested that the strength in App Store revenues could lead to an upside in the current Street estimates for Apple’s September quarter.
MacDailyNews Take: With AAPL shares down nearly 3% today, those who like to buy on dips – along with Apple longs – are likely to be buoyed by this report.
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