J.PMorgan Apple F1Q Preview: Modest F1Q Beat, and Stronger Upside in F2Q as Supply Improves, Expect EPS Revisions to Drive Upside Apple shares are up +15% since the last eamings report, where it missed consensus revenue estimates on account of supply chain challenges, and is ‘outperforming the broader market (S&P), which is only up +3%, as expectations of an earnings upgrade eyele withthe majority of the tailwinds associated with the iPhone 13 eycle tracking better than investor expectations. We expect the ‘upcoming earnings print for Dee-Q (FIQ) to feature some of the headwinds from the slow supply chain ramp in relation to new products, which will limit the ‘magnitude of upside; although, we expect a modest beat nevertheless, led by beter iPhone shipments. That said, we expect the bigger driver ofthe earings upgrade cycle to be F2Q (March-end) revenue/EPS expectations, which will include {guidance for above seasonal iPhone revenue as the company achieves channel inventory balance later than in prior yew"'s and supply improves (2Phone builds ‘expected to track 62 mn in F2Q22 vs. $0 mn in F2Q21 and 37 mn in F2Q20), even as demand drivers remain strong. We forecast a modest beat on revenuc/earnings for F4Q, but an upgrade for estimates for future quarters driving our estimates t0 ‘be more materially above consensus for the full-year (FY22), While the recent ‘outperformance does ereate a tough hurdle in relation to expectations from the print itself, we believe investors will continue to justify the premium earings ‘multiple (30x) on expectations of further earnings upgrades, driving the shares higher with the positive outcome from a combination of a modest FIQ beat and a better outlook. ‘© iPhone revenue expected to be in line to modestly better for F1Q: Supply improvements to set stronger upside for F2Q. We are modestly tweaking our iPhone shipments to 83 mn units in FIQ (vs. 87 mn prior), slightly above consensus of 82 mn units which translates to revenue of $68.6 bn (vs. consensus of $67.7 bn). With supply continuing to improve and helping achieve desired channel inventories in line-to-higher than prior years, we see a more sizeable upside to F2Q where we are now forecasting shipments of 61.0 mn units in F2Q (vs. 37.0 mm prior), translating to revenue of $49.2 bn (vs, consensus $46.4 bn. ‘* Reduce iPad revenue on supply constraints, but still expect strong Products, revenues. While the iPhone revenucs are less impacted in F1Q by supply chain constraints, we do not expect Apple to side-step these challenges completely, particularly in relation to iPads where components were diverted to iPhones and suffered from long-lead times. © Forecast revenue/EPS materially ahead of consensus for F2Q and FY22. JPM forecasts FIQ revenue/EPS of $119 bn/SI.94 vs, consensus of $118 bn! $1.88; more material upside in F2Q, JPM forecasts revenue/EPS of $95 ‘ni $1.50 vs. consensus of $90 bn/S1.33. Higher magnitude of upside to consensus starting in F2Q, helped by improving supply, leads to greater upside for FY22: revenueEPS of $382 bn/S5.95 vs, consensus of $382 bal$5.73, North America Equity Research 18 January 2022 Overweight AAPL, AAPL US Price (12 dan 2): $178.53 Price Target (Dec-22): $210.00 Telecom & Networking EquipmentiIT Hardware ‘Samik Chatterjee, CFA *° (4-212)6220798 sami chetiree@jpmargen com LLP. Morgan Secuntis LLC Joseph Cardoso (0-212)622-038 Joseph. cardoso(@jpmenase.com LP. Morgan Secuntis LLC Angela Jin (9-212) 822-0514 nga naipmenase com LEP Morgan Souris LLC Manmohanpreet Singh (or22)6187-5107 rmarmonanprestspgh@ipmehase com LP. Morgan laa Pivata Lites Key Changes (FYE Sep) Prov Cur i S-226 (8) 60505 2a EPS 236 (8) 67 85 Reverue-22E (mn) 380755. e014 Revenue 23 ( s15730_ 41266 Quarterly Forecasts (FYE Sep) Ad, EPS (6), ma mee ar ‘ee Ge 200 @ 0 1 tat a ao ie ta a 1m a aa sei 50565 ‘Style Exposure Quant Cte‘ Rank (Top) Factors Rank eM TY 3 SY Voue 2) sn) so) coh tm Monentin 2 «8% cuatty (2) fs) ay a lwo Esco > Da De Snucesfor Se Expose JP. Moyen Gata retaes ray al theta conpary aan JP. Mogen esas. ‘See page 8 for analyst certification and important disclosures, including non-US analyst disclosures. JP. Morgan does and seeks to do business with companies covered ints research reports. AS a result, investors should be aware that the frm may have a confit of interest that could affect the objectivity ofthis report. Investors should consider this report as only a single factor in making their investment decision.‘Sam Chat, CFA (0212) 622 0798 amc. chateee@jpmorgan com — AAPL Price (8) bee 3% Rel 2m ‘Company Data ‘hers 1S (mn Szoeek ange (8) Mast cap (0) Echange rate Free fat’) {3-day vl fm) | gal val ($ 9) ‘etait (0 ay) Inds 566 BUYHOLDSELL Key Metrics (FYE Sep) Sin milions Financial Estimates Revenue + EIT ‘x, EBITOA ‘pat acon 1, S| BBG EPS Cashow tom operations ForF Margins and Growth evorue gowth BIT magn BIT gowth EBIIDAmagn EBITDA gown Net mage Ag, EPS growth Ratios ‘trate Inet ver Net detguty NetGeQEBITOA ROE Vatuaton FFF yi Den yale EVRevene EVESITDA 4, PE North america Equty Research 18 January 2022 uiz onzt lanza 'S&P500 (robased) im Ea om zai aes =r 5 45% 19% 16595 eage11621 "29195000 1.00, ws% 00 14785 5 sePs00 sei FIA FIRE FYE FYRME ase sezo14 412664 441500 asec 115004 12516313549 210s 190818 19.18 158747 ‘heen ‘Seem 105207 119800 at ass amo) io en er ine todas 25427 are 190270 92853 18675 155422 128281 BI te we Ta 2 SH OTH Gia% 50% Baw a2 Bm MP TH BOK rt BR Bh EK TH Tek “6h KAN 139% 168% 15TH 18H 14 19k 7 0m) oa TAS 1809% ORK 135.14 er ee ee soe ak me 7B 8 tad na Seda JPMorgan ‘Summary Investment Thesis and Valuation We rate APL shates Overweight given our favorable outlook ‘on iPhone and Services revenues relative to investor expectations, catalysts to accelerate revenue growth, and upside risk to our base forecast for +9% earnings CAGR. We see upside on several aspects of the business as well as, financials that remain underappreciated by investors, namely the transformation of the company to Services, growth in the installed base, technology leadership, and optionality around capital deployment—all of which together lead us to expect double-digit eamings growth and a modest re-rating for the shares. Our December 2022 price target of $210 is based on a P/E. ‘multiple of ~30x on our CY23 earnings estimate of $6.88. Apple shares have traded closer to 30x P/E following the re- rating on account of Services growth as well as expectations of better execution on the product cycle, which we expect to bbe a multiple investors are willing to return to attributing to the shares, with beats driven by more sustainable secular drivers in iPhone and Services with a larger installed base, higher share in 5G smartphones, and better Services ‘monetization ~ all together turning out to be a strategic advantage for the company. Performance Drivers ‘ce, TT 21% 2% Maco 1% Sie fl S% ‘55/1, 30% Fao ‘Wicor Veer Sect Tecnology 030 083 te Tech Hrd Ein ome ow ace cue ot ax on US yr pt om on St felon oa on ant Ses Gow oa oar ‘ty ast 035, vue an Pr] oan Fane, Pog Gara nse Sra a brs acon dla JP Mpainae Nl Ps ty maybe‘Sam chat, CFA (0212) 622 0798 ‘samicchateee@jpmorgan com Figure‘: iPhone Shipments North America Eauty Re 43 sanuary 2022 arch JPMorgan JPM iPhone Expectations Figure 2: iPhone installed Base = een] (eee i FS . i 20 az 227 28 bee 4,116 200 190 190 100 1,048 180 169 1,000 948 = a ' a ao ae 120 I m I = = EEEREREEEL EES PEEEEE EES eo sc ance cas nace basal 40% wAsP Growth a Pelt se roonaes $957 9751 God 7 Er = 7 . = $650 $629 « fe . “11 i I BE? —«< { — z 20%Gaipemene nx chatje@jmorgan com North America Eauty Res 43 sanuary 2022 JPMorgan Investment Thesis, Valuation and Risks Apple Inc. (Overweight; Price Target: $210.00) Investment Thesis We rate AAPL shares Overweight given our favorable outlook on iPhone and Services revenues relative to investor expectations, catalysts to accelerate revenue growth, and upside risk to our base forecast for +9% earnings CAGR. We see upside on several aspects ofthe business as well as financials that remain underappreciated by investors, namely the transformation of the company to Services, growth in the installed base, technology leadership, and optionality around capital deployment—all of which together lead us to expect double-digit earnings growth and a modest re- rating for the shares Valuation Our December 2022 price target of $210 is based on a P/E multiple of ~30x on our CY23 earings estimate of $6.88. Apple shares have traded closer to 30x P/E following the re-rating on account of Services growth as well as expectations of better execution on the product eycle, which we expect to be a multiple investors are willing to retum to attributing to the shares, with beats driven by more sustainable secular drivers in iPhone and Services with a larger installed base, higher share in 5G smartphones, and better Services monetization — all together turning out to be a strategic advantage for the company. ‘AAPL PIE-Based Price Target Analysis. Sin ions excep per share aout [i [JPM Net Income 96,894 PM EPS. $5.95} PIE Multiple 29%] \JPM P/E Multiple 305] [Total Equity Value 2,919,959 | 3,288,673 [Average Diluted Share Count 16,6361 | 15,564.9 Implied Share Price $175.5 $210.0] (Current Value per Share $175.53) $175.53} Upside vs. Current 20%| Memo: (¢) Net Cashi(Debt) 65,797| 111,767 Enterprise Value 2,854,162 | 3,176,806 \JPM EBITDA, 130,818] 146,913 Implied EV/EBITDA 21.8%! 21.6%! Sara gna,Gaipemene Som chtojs@jpmorgan con No nen EyReetch JPMorgan Risks to Rating and Price Target Industry Downside Risks Deceleration or contraction in the handset and smartphone market could be faster than expected. Economie conditions or shifting consumer demand could cause greater-than-expected deceleration or contraction in the handset and smartphone markets. This would negatively impact Apple’s prospects for growth, and the shares may fail to achieve our price target asa result, Increase in competitive pressures in international markets. Apple i increasingly participating in international markets, such as China and India, where local players, which are better situated, could leverage their position, and pull on levers such as pricing to make the market more competitive. In addition, tariffs enacted by local {governments may further hurt Apple’s ability to compete effectively in international markets Company-Specific Downside Risks Investment in new business strategies and acquisitions could be fruitless. Apple has historically invested in new business strategies and acquisitions. As such, success ‘on these investments has low visibility at this time and could lead to greater-than- expected liabilities and expense. Additionally, new investments could have a negative impact on current operations by distracting management, Key man risk around departure of chief executive officer. While risks related to departure of management executives appear considerably lower relative to the past, ‘we believe the execution on strategic priorities under CEO Tim Cook’s leadership sii present modest risk tothe share price although we see a strong group of ‘executives to support business performance without disruptions.Sam Cate, CFA North Avie Eauty Resor eayeas fet "Stan Bz JPMorgan cate ipnerencon Table 1: Apple Summary Table Sin tons ‘Sep Fiscal Year End paoo] sant ants sant| amt rane same same] mone) rane roe sane sane] _20RE! Prone Unis m on ml o os — e s ss cfm Phone Revenue seryeil 65507 47958 39570 3086) 91973 49210 34290 39483] 1574) 6537 40384 ase 49338] 95478 IPatrovenve 27) 8438 TaN 79888282) 1.882 vas 775 Tse) an80) 836875717285 ona] 0986 Mac evens 2822) 8675 9.028235 9.178) 95:00 908 8232 9ars] 12] 9oe7 940052 aaa] 7.387 Weartias Revenue soem) err 788 775785] 38:87 aera aed 10305] 4t7a8] 13353 90 gm taza] e792 Services Revenve 55768) 15761 390117486 18277] 425 zoist—zmase 2270] gama) ze 2asr1 saz 278z0] 0782 Revenue mmasis| 191439 anes wt 83360) 65817 94689 73.149 aa487| aazpnd) 125100 91784 91575 105,188] 412844 oa wy ee ee | 57% 20% © —TaK] 44TH OSH 8H] OH Product Gu 518%] 351% 951% 60% 94.94] 5.94 358% 334% 3.9%] 51H] 594 49H wa 394] a4 Sewies GM G80K| 684% 701% 28% 705%] TH 714% 720% Taos] THA) 720% 20% T2z% Tez! Ta eos Marg M2 8% 25% 8% eel a18H ee eS ee ee | pec R568) 0794 sos7e 1.829 1388) 4887 rzozz 12268 s2sue] 49203, taset 13504 13.461 13606] 54.24) (pe as oss ters] 97% tax tam a7] sear 127% 155% 140s] f29R] tom sam 147% s20N1 faz ‘Operating Income (CO) 6208) su asm 2426 2786) 18900 zyamn 22210 2876) 5004) 449 arts aTt8s 32387] 125169 opeting margin 261%] 301% 07% 98% 54] BH 7% 261% ou] IH] 31.24 HHH aT 054] 09H Netincome STAN) 25795 23630 21744 set) 94680 24ast 187092882] BBM) azar! z8eT aH 27226] 105327 Diluted EPS saz] sis sta sta si24] gst S150 S118 S136) $95 seas stat Stas S174] S68) ines Shares ave) rsre] 71 1690016702 1865) 18606 e312 16199 te] 10278) 15701572 15768 15605| 158 cash teases] te5s571 2i5s13 183644 180516) 180516 zaiss2 2izera 212740) 2ra740| 210839 283778 242408 250810] 250810 est tease] srz013 zits 21701 124,719] ra4rI@| 124719 124719 71a 4710] a47TB] 1a479 ta4TIB to4719 124710] taE7I9 Netent (@rten] 525) (4256) (7LA55) (8575) (657HN] (69347) (BASH) (85.204) (BORN) (BORN) (65.20) (rogoss) (117.585) (125.08) (125081 Net Leverage 10x] 1% 08 08% 05-05, ee oon] On| Om) Ok Om Om] OB perating Cash Fw amare) aa7e3 3nat 4004 9200] toggae| 20.101. 55.407 15,120 25,700] tasaaT| 24005 sas sagas 35017] NAAR epta Expendies (ra0a] (3300) (2250) (2088) 3.2) (140H] (2988) (2358) 1.97) 2236] B85] GOTT) 208) 288) as)} (106) Fre Cosh Flow 73365) 35283 712 9001 w6ar7| goss] 7.32 SsN 1341 zasea] Team) zits 46553 sams 52.362) tana hides (1406n] 515 Ga Tey sem] (I446N] (5H) (3558) B77) 2745] (1488) 7H) oH B9R) 95H}] 15361] ‘Shar repurchases Creasey! (775) (18546) (22800) (19748) (STH (20000) (29000) (20000) (2n.000)| (e000E)| (20.000) (20000) (20.000) ea.000}| (60.000 Siac: Conary pt dP. Magan sitsGaipemene Sam chatoje@jmorgan com North america Equty Research 18 January 2022 JPMorgan FYaOA_FYRIA_ FY Mi m4sis”sesaiT zoie ize UO 1095212.) 7.797) (2571) 4.10) Tpeone Sateen Guat Revenue oss __ {ORE SORE S0me aoe iiaria” 6650 Ta 0" AT e354) 63607 ArH) 60957) (ross prot TO4SHE DASE 16422T BADE 195422 Gross prot 0207 a10e2 seaTe 38500 som (18818) (2.872376) 5.361) 12) SCBA. (5578) (5859) 5%)_(508) ‘Ad ETO ‘Trai 12001 130818 143,108 184747 AG EBITOR \s5t 33537 zest TE oa 1.088) (ee) (I) (BONS) 19.308) OBA (3888) si Ga (3509, ‘Ag, €or HE OHS 115004 12514913549 Ag EO SF8T 30M 22210-25976 Neth é Natit cas OT ‘arom TRY TTaaOE THAR HBTS. Ag, PBT Tx (60) (14827 (17908) (8646) (21808) Tax (5308) (4519) Morty eet oy est ‘Adj et income ‘HAT BEBO 96RD TOSSAT TIO As NetIncome Tas mes 70S Fi Ropar EPS ‘17561 805665735: Reperas es tok 115 18 1h ES Sa S61 595885735, Aah EPS soe 10115136 rs 7 Ps. oe Payal to : D1 payout oe Se ‘Shae ude 0808 1580816407 shares essa 16452 e312 1609 16088 ce Sheet FYE . iA FY Fae ash and cash equiaenis wee wea aii Ba ak His aoe aa Deca eale e100 26278 S808 3713 EBTDAMagh BA SH SK UTS OK Inver ‘4061 6580 18012 18704 BIT main 21% mek GOK MI OTH (er cure ses eas e708 57038 67.035 Natptt maga Ds 9K 2505 28H 257% Ccurerasses Hard Mae T4273 2I6EO 2815 Prat 38785 92440 5317625447 AT ATT_ ROE Tar ra 15085 BIH 195.1% Tweens {C0887 127877 ames 125888 125888 ROA TSK AIM 284% 26% 783K Ober an arenas 2252248819 48MG_48588 aR ROE BOTS SIT Sta BIH BAN, Toulasses SO3an8_ Sete 65 186_A1TAN2_UastO SGAASScs 73% 60% BZ 8 2 Neteoteauty Mk 1 Od Ne ‘Suna teens 13769 15613 15613 81315618 Payates ee BT m3 ms BA Be (er st am atts aa32T 510570252 _B1502_a84si_ PV) a2 40 G7 9 23 ‘Curent bits 05382 TESA81 TERS 0144 TO9BEE EVIESTOA je) eo me 8 ete angie cet 687 108105 109106 108708 108105 Dvdend iss : (ron to abies Sia) 8205 515 SMS S105 Tota bites BSG BHT SITASL BA2S7S SSQOB. Sele) Ob Dw Shah ety 5200 6000 G52 TS3OB G25. Ietcove i) - Moor ire se = Operainglensape Foo TSK 12555 TOOK HHTSK Tot itis & equity Sabaie_seiie_eaies_ Arana asi aves 3723740478600. Revenue yy Growth 55% SN Ak BOK 708 Gon (eae) 08% TAK 185% 28% EBTORNV Crowe, 1% E54 BIH 95 IH, Net deta) T2BHT WATTS 8GSEE 78498 (522) Taxa HAN TIM 156 15TH 162% Aaj NetneaneyiyGonh «39% LG 23H BT THK, Cosh‘low om operating eves «STA 104538 125427 N4R7SH1382TO EPS)iy Geom ZA THE BZN TAK OAK ‘om Depecaton arto 11056. T1284 150% 180K5 T9A08.DPSyy Gown zs : cw Cares nner apa 56 49m) 19718 205 66H sh‘ om investing actives, 4.289) (14545) (9580) (10316) 11.038) ‘Copal experi (309) (11985) (8580) (036) (1108) ts teofeae ‘2% 20K 25% 25% 28K ashiow om fnancing activites (AEH). (93224) (84852) 5351) EE) ‘ow Dien pd (ods) (467) (14882) (15351) (69) ‘hw Net et ene) 2a 265 0 Net change in eas (10300) (731) maz24 saad aes ‘dj Fre cash ow totem 73385 a20ss 1igaTe 133422 28231 Gon 246% 67% 257% 142% 9) ‘Sar Conny a JP Tagan No: Sin milan apr she a Fal ya es Sep, Wl ten‘Sami chat, CFA North america Equty Research (0212) 622 0798 18 January 2022 JPMorgan ‘samicchateee@jpmorgan com Analyst Certification: The Research Analysts) denoted by an “AC” on the cover of this report certifies (or, where multiple Research ‘Analysts ae primarily responsible for this report the Research Analyst denoted by an "AC" on the cover or within the document individually certifies, wih respect to each security or issuer thatthe Research Analyst covers inthis research) tha: (1) all ofthe views expressed in this report accurately reflect the Research Analyst's personal views about any’ and all of the subjet securities or issuers; and (2) no part of any ofthe Research Analyst's compensation was, is, oF wll be directly or indirectly related to the specific recommendations ‘or views expressed by the Research Analyst(s) in this report. For all Korea-hased Research Analysts listed on the front cover, if applicable, they also certify, as per KOFIA requirements, thatthe Research Analyst's analysis was made in good faith and thatthe views reflect the Research Analyst's own opinion, without undue influence or intervention All authors named within this report are Research Analysts unless otherwise specified. In Europe, Sector Specialist (Sales and Trading) ‘may be shown on this report as contats bu are not authors ofthe report or part of the Research Department. Important Disclosures (© Market Maker: P. Morgan Securities LLC makes market in the securities of Apple. ‘© Market Maker/ Liquidity Provider: .P. Morgan is a market maker and/or liquidity provider in the financial instruments oPelated to Apple ‘© Manager or Co-manager: J.P, Morgan acted as manager or co-manager in a public offering of secutites or financial instruments (as such tem is defined in Directive 2014/65/EU) of for Apple within the past 12 months, ‘© Analyst Position: An analyst on the Equity or Credit coverage team, non-fundamental analyst who may produce trade recommendations, or a member oftheir respective households) has a financial interest inthe debt or equity securities of Apple. © Client: 1P. Morgan currently has, orhad within the past 12 months, the following enity(es) as clients: Apple. © ClienvInvestment Banking: J.P. Morgan curently has, or had banking liens: Apple the past 12 months, the following entityies) as investment ‘© ClienvNon-Investment Banking, Securities-Related: .P. 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Morgan has received compensation inthe past 12 months for prodets or Company-specifie Disclosures: Important disclosures, including price charts and credit opinion history tables, are available for compendium reports and all} P. Morgan-covered companies, and certain non-covered companies, by visiting hnps:/vww,jpmm.comvresearch/diselosures, calling 1-800-477-0406, or e-mailing research disclosure inquities@ljpmorgan.com with your request‘Sari chatce, CFA Nort Aerea Equity Research (Gaayezcarse ‘Slanmy 2522 JPMorgan om ateree@oeren cam Dae Rang Pie) Rice & a ‘pe (AAPL, ARPL US) Price Char Orato OW sor toi OW S100 @ ie woes OW Bat x ee soate ow ea 10 Ps tetoeto OW esse 728 Pras troecis OW seat aint OW Tee = ‘Ptan-20 OW 7T.24 ars teapez0 OW e480 Be 7 raloy20 OW 7845 a7 Zenloy20 OW 7053818 Zaa On e208 ° was OW aso H8 My Sip in May Spey Se» o1.sep20 OW 904 «50 mawat ow tases Seve: Beer Face? Noga nn oats isan. = operat OW ese Renters ins Micweinsecreconberocatene tn, Coauat OW 1980 fongzt OW Mess a0 ‘oeez OW teas 20 ‘The char(s) show J.P. Morgan's continuing coverage ofthe stocks; the curent analysts may or may’ not have covered it ver the entire period. ‘LP. Morgan ratings or designations: OW = Overweight, N= Neutral, UW = Underweight, NR = Not Rated Explanation of Equity Research Ratings, Designations and Analyst(s) Coverage Universe: LP. Morgan uses the following rating system: Overweight [Over the next sx to owelve months, we expeet this stock will ousperform the average total retur ofthe stocks in the analysts (or the analysts team’s) coverage universe] Neutal [Over the next six to twelve ‘months, we expect this stock will perform in line withthe average toalretum of the stocks in the analysts (or the analysts team’s) coverage universe] Underweight [Over the next six to twelve months, we expect this stock will underperform the average total retum of the stock inthe analysts (or the analyst's teams) eoverage universe ] Not Rated (NR): J.P. Morgan has removed the rating and, if applicable, the price target, for this stock because of either a lack ofa sufficient fundamental basis or for legal, regulatory or policy reasons, The previous rating and, if applicable the price target, no longer should be relied upon, An NR designation is not recommendation o a ating. In our Asia (ex-Australia and ex-India) and U.K. small- and mid-cap equity esearch, each stock's expected ‘otal return is compared to the expected total return ofa benchmark country market index, not to those analysts’ coverage universe Tit des not appear in the Important Disclosures section of this report, the eemifying analyst's coverage universe can be found on 3 “Morgan's research website, www jpmorganmarkets.com, Coverage Universe: Chatterjee, Samik: Amphenol (APH), Apple (AAPL), Arista (ANET), Avaya (AVA), CDW (CDW), Cambium Networks (CMBM), Ciena (CIEN), Cisco (CSCO), CommScope (COMM), Coming (GLW), Dell Technologies (DELL), 5 Ine (FFIV), Fabrinet (FN), HP Inc (HPQ), Hewlett Packard Enterprise (HPE), I-VI (IVD, Infinera (INFN), Juniper Networks (INPR), Keysight ‘Technologies (KEYS), Lumentum (LITE), National Instruments (NATH, NetApp, Inc. (NTAP), Qualcomm (QCOM), Sensata (ST), TE Connectivity (TEL), Viavi Solutions (VIAV), Wolfspeed Ine (WOLF), Xerox Holdings Corp (XRX)‘Sami chat, CFA North america Equty Research (0212) 622 0798 18 January 2022 JPMorgan ‘samicchateee@jpmorgan com LP. Morgan Equity Research Ratings Distribution, as of January 01, 2022 Overweight Neutral Underweight hold)” TP Morgan Global Fig Research Covers a % tiene om 346 IPMS Equity Reseach Coverage™ 3m ctiens* 38%. iam sme ‘Please noe tha the percentages might no ad to 100% beease of round **Porcentae of subject companies within each ofthe "by." “ol” and" serves within the previous 12 months For purposes only of FINRA ratings distbuton rules, our Overweight ating ls nto a buy eating category: our Neutral ating falls ato ahold ating ‘utogor! and ou Undereight rating als nto a sel rating category. 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