Analysts are getting even more bullish on Apple into its earnings report

Published Mon, Jul 24 20237:22 AM EDTUpdated Mon, Jul 24 202310:14 AM EDT

Two analysts raised their expectations for Apple shares, a week ahead of the technology giant's next earnings report. Deutsche Bank analyst Sidney Ho reiterated his buy rating on the Big Tech stock while raising his price target by $30 to $210. Ho's new target implies an upside of 9.4% over Friday's close. "While we believe some of these upside potentials are already priced in, we note that the multiple expansion seen by AAPL in the past 3 months is consistent with other Big Tech names," he said in a note to clients Sunday. "Despite higher valuation, we continue to view AAPL favorably given its high quality of earnings." Ho said to expect Apple's third-quarter earnings and current-quarter guidance to come in line or slightly above analyst expectations when the company reports next week. Third-party data and the firm's recent checks both show potential upsides for the iPhone, Mac and services businesses, he said. Though the global smartphone market has seen less recovery than expected, Ho said Apple has had some cushion due to its place as a premium product. He also said Apple could see iPhone units grow on an annual basis for the 2023 calendar year despite Wall Street expecting a drop of around 5%. Apple could also see upside due to foreign exchange causing less of a headwind than previous quarters and component pricing after the company built a strategic inventory last quarter, he said. Wells Fargo analyst Aaron Rakers also upped his price target Sunday, bringing his expected price per share to $225 from $210. The new price target from Rakers, who has an overweight rating on the stock, shows that he thinks shares could jump 17.2% over the next year. He said to expect an in-line revenue report and slight beat to expectations for earnings per share. But he said the firm is keeping current-quarter expectations that are below Wall Street expectations, while noting those could be conservative. Rakers also said the company could see the services business reaccelerate but that iPhone sales should come in line with expectations. Both analysts' price targets indicate Apple's rally could have more steam ahead. Shares have already risen nearly 50% this year. AAPL YTD mountain Apple's 2023 — CNBC's Michael Bloom contributed to this report.