More: Apple (AAPL) Could Move Higher on In-Line Results
Given Conservative Buy-Side Expectations, Says Pacific Crest
July 11, 2016 9:30 AM EDT
Pacific Crest maintained an Overweight rating on Apple (NASDAQ: AAPL) and trimmed its price
target to $121.00 (from $123.00).
Analyst Andy Hargreaves thinks in-line Q3 results and guidance would drive shares higher.
"We recommend owning AAPL," said Hargreaves. "Investor sentiment appears quite negative and we
believe in- ine FQ3 results and FQ4 guidance could drive the shares higher. We are slightly reducing
our estimates to account for potentially slower consumer spending in Europe, but continue to see the
risk/reward on AAPL as favorable."
"We expect FQ3 revenue and EPS of $41.7 billion and $1.39, which are slightly below current sellside
consensus of $42.2 billion and $1.40. However, we believe buy-side expectations are more conservative
than the sell-side. Further, we expect Apple to guide FQ4 at least in line with sell-side consensus, which
should provide a measure of relief to investors who are concerned about further deterioration through the
iPhone 7 cycle," continued the analyst.
Hargreaves added, "Our mostrecent checks with suppliers in Taiwan suggest orders for iPhone 7/7+ in
2H16 could be down 20% versus the 6s/6s+. We believe this reflects over-ordering of components early
in the 6s cycle and a mix shift to iPhone SE, and does not suggest incremental downside to the current
consensus estimate for Apple to sell 118 million iPhones in C2H16."
I am not sure why this Pacific Crest story reads more bullish than the one 10 minutes earlier:
Message 30655679
The only thing I can think of is the higher opening expected on AAPL or Pacific Crest analyst
objected to the bearish way the previous story was written.
o~~~ O |
