By Sam Boughedda
Deutsche Bank analysts cut the firm's price target on Apple (NASDAQ:AAPL) to $160 from $170, maintaining a Buy rating on the stock in a note Monday.
The analysts said the firm is trimming estimates further for CY23 and is more cautious about consumer spending.
"We expect AAPL to report F1Q (Dec) results at or slightly above our estimates," said the analysts. "Our checks suggest that the constraints have improved, and we believe F1Q results could end up better than our estimates. Looking forward to CY23, we are more cautious on consumer spending and are dialing back our demand assumptions, resulting in our CY23E EPS going from $6.50 to $6.30, slightly below Street's $6.33."
Looking ahead to Apple's fiscal first-quarter results, the analysts said they expect the results to be in line with or slightly better than their estimates.
Deutsche Bank believes "the supply constraints have improved," and its checks suggest order lead times for iPhone Pros have reduced.
"In addition, AAPL should benefit from a more favorable foreign exchange environment, which should benefit both Products and Services businesses. We believe these positive factors should at least offset the weaker consumer spending in the quarter," the analysts added.