Apple Inc. (AAPL.US) is expected to exceed expectations for Q1 performance, prompting several investment banks to raise their target prices.

Apple Inc. (AAPL.US) became the focus of the market on Friday as the company's first fiscal quarter earnings guidance for the quarter ending in December far exceeded Wall Street expectations. Apple Inc. expects strong growth in the quarter ending December, especially with a resurgence of growth in the Chinese market. However, despite the impressive guidance, Apple Inc. stock traded lower on Friday morning, erasing pre-market gains. Its suppliers like Skyworks Solutions (SWKS.US) and Corning Inc. (GLW.US) had mixed performances. Citigroup analyst Atif Malik stated in a research report that Apple Inc.'s optimistic guidance is benefiting from a stronger product cycle, particularly the performance of the iPhone 17 Pro. "We believe the base of iPhone installations is the foundation of each replacement cycle," he said. "Apple Inc. is experiencing a record-breaking upgrade cycle, with users from different groups showing love for the latest models, especially the slim design and camera features of the iPhone Air." Malik expects Apple Inc.'s first fiscal quarter ending December to be the strongest quarter in the company's history, both in terms of total sales and iPhone sales. He added that Apple Inc. not only saw an acceleration in replacement speed but also an increase in the number of users upgrading and entering the Apple Inc. ecosystem. Driven by optimistic expectations, Malik reiterated his "Buy" rating on Apple Inc. and raised the target price from $245 to $315. KeyBanc Capital Markets analyst Brandon Nispel believes that Apple Inc.'s financial report is "robust," and the guidance is "worth noting," expecting double-digit growth in iPhone and overall revenue. However, considering the recent increase in stock price, he anticipates that Apple Inc. stock may undergo a short-term "consolidation." Nispel gave Apple Inc. a "Neutral" rating. Although Needham analyst Laura Martin has a "Hold" rating on Apple Inc., she also stated that the strong guidance "highlights Apple Inc.'s moat." However, she expressed doubts about the sustainability of demand for the iPhone 17. "We continue to adopt a wait-and-see approach, as Apple Inc.'s current valuation is relatively expensive, and fundamental growth faces challenges with rising competition pressure," Martin wrote in a report. "We believe Apple Inc. stock may need to wait for the next cycle of iPhone upgrades to strengthen again." In addition to the above institutions, several investment banks, including Melius, have raised their target price for Apple Inc. after the earnings report, while Jefferies directly raised their rating.