By Senad Karaahmetovic
BofA analyst Wamsi Mohan reiterated a Buy rating on Apple (NASDAQ:AAPL) and a $200.00 per share price target.
The analyst sees several tailwinds on both hardware and services, such as user growth, ASP, and increased penetration of installed base, which could help the Cupertino-based giant to recover following a recent selloff.
The latest data showed that global App Store revenues soared 7% YoY to $2.6 billion through April 30th with total downloads up 5% and ASP higher by 1.7%. The growth rate is ahead of about 6% y/y revenue growth in F2Q22.
For April only, Global App Store rev grew 8% y/y (vs. 7% y/y in Mar) and downloads grew 6% y/y (vs. 2% y/y in Mar).
China is also seeing an accelerating in App Store revenue growth.
“China gaming segment revenue grew 13% y/y in F3Q22 QTD, while China gaming downloads grew 19% y/y. In April, the Chinese government lifted its nine-month new gaming licensing ban, approving 45 titles. Given the slightly favorable stance from regulators and ongoing lockdowns in China, we potentially see upside to the China App Store growth in F2H22,” Mohan wrote to clients.
Net-net, the analyst is projecting the total Apple Services revenue to grow 12% y/y in F3Q22.