Shares of Apple (AAPL 2.11%) climbed higher on Monday, adding as much as 3.5%. At 11:42 a.m. ET, the stock was still up 3.3%.
The broader market indexes rallied, no doubt contributing to the iPhone maker's upswing. However, two analysts -- in separate missives -- have concluded that presales of Apple's new iPhone 14 are going better than expected.
Wedbush's Daniel Ives has been keeping a close eye on Apple's website and notes that delivery times have quickly been pushed out to mid-October for the more expensive iPhone 14 Pro models, while the remaining preorders will take at least three weeks to process and wait times are quickly getting longer, according to The Fly. Ives noted that not only are iPhone 14 orders tracking ahead of his expectations, but consumers are ordering more Pro and Pro Max models, which will drive up the average selling price (ASP) for Apple. The analyst theorizes that this consumer demand for the Pro models will also be heavy in China, an important sales region for Apple.
It's worth noting that Ives maintained his outperform (buy) rating on Apple with a price target of $200. This suggests potential gains for investors of 40% compared to stock's closing price on Friday.
Bank of America (BAC -0.78%) analyst Wamsi Mohan came to a similar conclusion, noting that heavy demand for the iPhone 14 Pro and Pro Max models are resulting in longer wait times compared to the similar iPhone 13 models. Mohan pointed out that the current ship time for the Pro is 30 days, versus 26 days at the same time in the iPhone 13 cycle. Similarly, the Pro Max is 39 days out, compared to 27 days for its predecessor. The analyst found this "particularly impressive" given the tech giant has raised prices in some places to offset the impact of a strong dollar.
Mohan maintained his buy rating and $185 price target, suggesting 18% upside from Friday's closing price.
To put this information in context, the iPhone has generated more than 54% of Apple's $282 billion in sales revenue so far this year, so these presales numbers bode well for Apple's future. For this and many other reasons, Apple remains a buy.