Analysts are bullish about Apple's strong Q4 earnings (AAPL)

Tim Cook

Apple reported its fourth-quarter earnings on Thursday.
It beat Wall Street's expectations, with strong results across all of its product lines.
The forecast for Q1 2018 is also good, and most analysts are upping their price target for the stock.

Apple announced its earnings for the fourth quarter of 2017 on Thursday, and blew past analysts' expectations.

The company displayed strength across all of its key product lines — iPhone, iPad, and Mac — reporting profits of $10.7 billion (£8.1 billion) on $52.6 billion (£40.2 billion) of revenue.

The firm sold 46.7 million iPhones, 10.3 million iPads, and 5.4 million Macs, and briefly crested a $900 billion (£689 billion) market capitalisation in the after hours, with shares up 3%.

Apple's services experienced particularly strong momentum, with a 34% increase year-over-year (YoY), 18% quarter-over-quarter (QoQ), and a $8.5 billion (£6.5 billion) in revenue, which would put it at no. 95 on the Fortune 500 list.

The company is especially bullish about the next quarter, too, in anticipation of the upcoming holiday season; CEO Tim Cook said that the company is "literally firing on all cylinders," with strong revenue guidance ranging from $84 to $87 billion (£64-£66.5 billion).

The new flagship product, the iPhone X, goes on sale today (Friday 3 November).

Keep reading to see a complete roundup of analysts' reactions to Apple's Q4 earnings, but first, here is a recap of the key numbers:

Revenue: $52.6 billion (£40.2 billion) versus $50.7 billion (£38.8 billion) expected

iPhone unit sales: 46.7 million versus 46 million expected (up 2% YoY)

Adjusted EPS (GAAP): $2.07 (£1.58) vs $1.87 (£1.43) (up 24% YoY)

Q1 2018 forecast: $84 billion (£64 billion) to $87 billion (£66.5 billion), with a midpoint slightly above the $85.2 billion ($65.2 billion) expectation.

UBS: BULLISH

Rating: Buy

Price target: $190 (previously $180)

Comment: "There is new energy in the story given the feature leap in iPhone 10,
improving results for the Mac and iPad, and outstanding services and wearables results.
Growth in Greater China (including services) is important with China a swing factor in
F18. We increase our F18 EPS estimate from $11.40 to $11.65 with $12.50 in F19."

Nomura: BULLISH

Rating: Buy

Price target: $185 (as it was)

Comment: "Apple closed FY17 on a solid note then offered healthy guidance for the first
quarter of the iPhone X. Recent supply chain improvements allay concerns of severe supply constraints. We expect consensus to come towards our high-end estimates. We retain our $185 target, and begin to ask... what is next?"

Deutsche Bank: BULLISH

Rating: Hold

Price target: $152 (previously $140)

Comment: "We continue to view Apple as a trading stock, and believe shares will trade at the higher end of their historical range while current market multiples are elevated and the iPhone X remains in short supply. We are raising our price target to $152 from $140 on higher market multiple, but maintain our Hold rating given our more conservative long-term view."

See the rest of the story at Business Insider