Apple Inc.

Two weeks ahead of Apple Inc. (NASDAQ:AAPL)’s earnings report, RBC Capital analyst, Amit Daryanani, weighed in on the stock.

The analyst believes that AAPL’s unit sales should be up to expectations ahead of their earnings release. Daryanani believes that the potential for more muted gross margins exist ahead of Apple’s September quarter and explains that the impact on gross margins could be due to sales of the iPhone SE preceding the release of the iPhone 7.

Daryanani affirms that iPhone ASP has been strong over the past two years mainly driven by increased storage and premium iPhone 6s/6s+ models. The analyst believes that the average sale price of the iPhone could decline slightly in CY16 to around $633. This decline in ASP is expected to be driven by a higher mix in sales of the iPhone SE and other lower-end models. The analyst upholds that demand for these lower-end products is outweighing supply.

The analyst explains that he sees Apple’s stock trajectory as “stable to moderately higher” in lieu of an attractive valuation and a decline in iPhone easing.

Daryanani reiterates an Outperform rating for AAPL with a price target of $115.00.

According to TipRanks, Amit Daryanani is ranked #1,886 of 4,055 analysts. The analyst has a success rate of 51% and sees an average return of 0.6%. When rating AAPL, the analyst maintains a success rate of 48% and an average return of 6.6%.

TipRanks analytics shows a consensus target price of $123.25 for AAPL, marking a 26.51% upside from current prices. Currently, 82% of analysts issue a Buy rating for AAPL, while 15% maintain a Hold rating, and 3% uphold a Sell rating for the stock.

Microsoft Corporation

Raymond James analyst Michael Turits reiterated a Buy rating for Microsoft Corporation (NASDAQ:MSFT) following the release of second quarter PC shipment data from both Gartner and IDC.

The data showed positive PC demand in the United States. The analyst explains that the report’s estimates were relatively in-line with his expectations and provides that moderating PC declines are good for Microsoft.

According to the analyst, “2Q PC shipments slightly better than anticipated. Global 2Q PC shipments declined 5.2% according to Gartner and 4.5% according to IDC. While Gartner’s figure was below its implied -2.3% March estimate, the decline was more modest than its implied -6.1% y/y June estimate.” In addition, North American PC markets turned positive for the first time in 5 quarters, and the analyst concedes that the Brexit has had minimal impact on shipment orders.

Turits reiterated a Strong Buy rating with a price target of $65 for MSFT.

Michael Turits is ranked #617 of 4,055 analysts on TipRanks and maintains a success rate of 53% with an average annual return of 9.2%. When rating MSFT, the analyst has a 43% success rate with an average profit of 4.7%.

According to TipRanks, the consensus price target for MSFT is $58.48, marking a 9.90% upside from current prices. 71% of analysts issue a Buy rating for Microsoft, 21% maintain a Hold rating, and 8% uphold a Sell rating for the stock.