Deutsche Bank analysts raised the price target on Apple Inc (NASDAQ:AAPL) to $170 from $160 ahead of the company's Q2 report, and reiterated a Buy rating, noting that investors appear to be "attracted by the company's quality of earnings and its strong balance sheet in an uncertain macro environment."
In the preview of the company's upcoming quarterly readout, the analysts believe the "print should be fine" and see AAPL reporting "results in line with DB/Street estimates, with strength in iPhone offsetting incremental weakness in other areas."
Deutsche Bank also sees Apple as well-positioned for Q3, noting that despite "potential for Products revenue to be lower than our estimates, we also expect lower component costs to drive upside to margins, leading to EPS in line with our estimate."
Lastly, the analysts highlight the company's service revenue, which is expected "to grow modestly at 5-10% y/y, as FX becomes less of a headwind."
On the sum of factors, the analysts believe Apple is well positioned to withstand the challenging economic environment and consumer spending worries, and expect "AAPL to deliver EPS in line with our estimate of $6.30, which is slightly higher than Street's $6.17."
The smartphone giant is set to report earnings on Tuesday, May 4th, after the market closes. The company is estimated to post EPS of $1.43 on revenue of $92.98B.