Goldman Sachs: Raises Apple's target price to $265, expecting iPhone shipments to increase to 230 million in fiscal year 2024

Goldman Sachs released a report, forecasting that Apple's earnings per share for the end of the third quarter in June will be $1.36, higher than the market's expected $1.33. Revenue is expected to increase by 4% year-on-year to $85.1 billion, with iPhone revenue in the quarter expected to decline by 5% to $37.8 billion, while iPad and iMac revenue are expected to increase by 23% and 13% respectively. Service revenue is expected to increase by 15% year-on-year. The bank pointed out that with the artificial intelligence system Apple Intelligence and new product innovations driving the replacement cycle, it is expected that iPhone shipments will increase to 230 million, 240 million, and 256 million units in the fiscal years 2024 to 2026. The number of Apple devices per iPhone user is expected to increase, and iMac and iPad will also benefit from artificial intelligence. As Apple continues to shift towards higher-end iPhone models and after years of investment in products and ecosystems, there will be an opportunity for price adjustments to achieve price/portfolio benefits. The bank raised Apple's average earnings forecast for each year of fiscal years 2024 to 2026 by 1%, reflecting a higher outlook for iPhone revenue in fiscal year 2026. The target price was raised from $238 to $265, with a "buy" rating