Apple stock rose Monday amid reports that iPhone 15 sales remain strong and are largely on par with year-ago sales trends for the iPhone 14 series. Lead times from order to delivery of high-end Pro models have shortened as supply begins to catch up with demand, analysts said.
In a note to clients Sunday, JPMorgan analyst Samik Chatterjee reiterated his overweight, or buy, rating on Apple stock. He has a price target on AAPL stock of 230.
On the stock market today, Apple stock advanced 1.5% to close at 173.75.
Chatterjee said his firm's global product availability tracker shows that iPhone 15 delivery lead times have moderated after two weeks of sales. That is "very typical for the lead-time trajectory when compared to prior years," he said.
Most of the decline in lead times for the iPhone 15 series is happening with the premium Pro models.
Early Order Momentum Meets Supply Constraints
"The average lead time for the high-end models is tracking to 37 days vs. 35 days in the same week last year with the iPhone 14 series," Chatterjee said.
He added, "Elevated lead times for the high-end iPhone 15 models were likely impacted by the confluence of early order momentum and slower supply ramp."
On Friday, Evercore ISI analyst Amit Daryanani reiterated his outperform rating on Apple stock with a price target of 210.
In a note to clients, Daryanani said the iPhone 15 Pro and Pro Max models are seeing lead times shrinking in China but are unchanged in the U.S.
"The data points to robust demand for the iPhone 15 Pro and Pro Max," he said.
Apple Stock Has So-So Composite Rating
Analysts widely expect the iPhone 15 sales mix to shift more to the premium models with this year's handsets.
In other news, Apple plans to respond to heat issues with the iPhone 15 via a software update, the Wall Street Journal reported.
Apple stock has a lackluster IBD Composite Rating of 71 out of 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
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