Ahead of Apple’s (NASDAQ:AAPL) FQ2 earnings release, which is scheduled on May 4, analysts at Credit Suisse raised their price target on the stock to $188 per share.

They think the demand for iPhones will be strong throughout the quarter. The higher price target results from higher revenue projections, which analysts attribute to improved China demand.

“Apple claimed an increase in foot traffic in the area during January but cautioned the gain could be connected to the timing of the Lunar New Year, even though we believe the trend was constant throughout the quarter. Retail traffic in China grew y/y in January and improved further in February, according to anecdotal information provided by Nike on its F3Q23 (Feb) earnings call on March 21, while LVMH recently reported a “significant” rebound in Asia sales following the lifting of Covid restrictions, analysts noted in a report to clients.

In contrast to the average estimate of $1.43 per share on $92.51 billion in revenue, Credit Suisse anticipates Apple to announce EPS of $1.45 on revenue of $93.27 billion.

In addition, experts anticipate the Cupertino-based giant will “likely” announce a fresh “$90 billion of additional share repurchase” programme and “likely” increase its dividend by approximately 5%.

We believe that as it works to become net cash neutral, the company will continue to prioritise share repurchases over dividends.

Apple shares trade 0.4% higher in pre-market Thursday.