Zinger Key Points
- JPMorgan analyst maintains Overweight rating on Apple with a $265 target, noting iPhone 16 demand recovery post-launch.
- iPhone 16 Pro models show steady demand, with delivery lead times moderating less than typical compared to prior cycles.
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JPMorgan analyst Samik Chatterjee maintained an Overweight rating on Apple Inc AAPL with a price target of $265.
In the fourth week of Chatterjee’s Apple Product Availability Tracker, the demand for the iPhone 16 series is recovering in momentum relative to the initial week’s post-launch, with delivery lead times moderating less than typical in prior product cycles, Chatterjee noted.
That the initial underwhelming lead times for the Pro models might be an aberration rather than a trend for the complete product cycle is looking more likely now, with lead times for 16 Pro moderating by only a day and remaining consistent over the last week for 16 Pro Max – both of which are indicative of better demand momentum week-to week than iPhone 15 Pro models, as per the analyst.
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That said, in the aggregate, lead times for iPhone 16 products are still below those of the iPhone 15 series. Still, he said lead-time differences between the lower-end and higher-end models in the iPhone 16 series are now higher than in the iPhone 15 series for the fourth week. Concerns around a weaker mix for the iPhone 16 series should moderate, as per the analyst.
In the fourth week, aggregate lead times have moderated by one day relative to the third week (versus four days of moderation in the fourth week of last year for the iPhone 15 Series), Chatterjee noted.
According to the analyst’s tracker, delivery lead times remain stable for Pro models in the US. The lead times increased for Plus models and decreased for Base models.
Chatterjee points out how delivery lead times are reduced for 16 and Pro models in China. Delivery times increased modestly for Plus and Pro Max models. Per his tracker, the delivery lead times moderated for Base models while stable for Pro models in Europe.
AAPL Price Action: Apple stock is down 1.01% at $224.57 at last check Monday.
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