Read Why Deutsche Bank Remains Bullish On Apple; Bumps Up Price Target BY 14%

• Deutsche Bank analyst Sidney Ho raised the firm's price target on Apple Inc (NASDAQ: AAPL) to $200 from $175 and reiterated a Buy rating on the shares. The price target implies an upside of 15.6%.

• Considering a "healthy demand backdrop" and Apple's "strong" portfolio across its product lines, the Street estimate for 2022 revenue growth of only 5% is too low with the push-out of some revenue from 2021 already accounting for three percentage points of growth, Ho notes.

• The analyst believes there is an upward bias to Apple's estimates. While supply chain constraints are a near-term headwind to revenue, Apple's supply chain has improved at a faster pace, with iPhone wait times shortening to only a few days, and that should be enough to drive a "beat-and-raise," Ho says.

• Further, he thinks Apple shares will "benefit from a flight to quality in an inflationary environment."

• Price Action: AAPL shares traded lower by 1.57% at $170.36 in the premarket session on the last check Tuesday.

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