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Apple Rises as UBS Lifts Target, Expects iPhone Sales to Climb

Apple shares are higher as UBS raises its iPhone sales estimates and its price target on the tech giant's shares.
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Shares of Apple  (AAPL) - Get Report were higher on Tuesday after analysts at UBS raised estimates for the company ahead of its earnings report scheduled for next week.

The firm affirmed a buy rating on Apple and lifted its price target to $166 a share from $155.

Apple shares at last check gained 2.2% to $145.64. On July 15 the stock touched a 52-week high $150.

Strength in iPhone sales in a quarter where sales are seasonally lower led to the firm's updated outlook. The forecast also comes in the face of supply-chain headwinds.

"Aggressive carrier promotions in the U.S. and strength in China should drive iPhone units to at least 44 million [in the June quarter], up almost 15% year over year and about 5% above our prior forecast," analyst David Vogt said. 

As a result, the firm expects iPhone sales to increase 12% year over year to 85 million in the second half of the year, driven by the launch of the next phone in September.

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The firm also raised its June-quarter forecast of average selling price by 2% to $825. 

For the year, UBS expects Apple to sell 227 million iPhones, up from its previous estimates of 225 million. The firm also raised its estimate for 2022 to 225 million units sold from 220 million. 

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Analysts at UBS raised their revenue and earnings estimates for the Cupertino, Calif., tech giant. The new estimates: $1.01 a share of profit on $74.7 billion of revenue, up from the previous view of 95 cents a share on $71.3 billion of revenue. 

Analysts surveyed by FactSet are expecting earnings of $1.01 a share on revenue of $73.1 billion. 

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