AAPL: Growth Slowing, More a Branded Consumer Story, Says Bernstein
Bernstein Research’s Toni Sacconaghi today reiterates an Outperform rating on shares of Apple
( AAPL) and a $750 price target, offering up the finding that “Apple’s growth is slowing. It has to.”
Apple shares today are down $2.45, or half a percent, at $546.55.
Sacconaghi doesn’t change any numbers from the revised projections he put forward for Apple on December
20th, when he cut his price target from $800, which show the company increasing revenue 22% this fiscal year
ending in September, followed by 15% in 2014 and perhaps just 8% in 2015, when it might produce $236
billion in total revenue and $63 per share in profit.
Apple is up against the law of large numbers, writes Sacconaghi, as “If the company grew at the same
pace it did over the last five years for the next five years, its revenues would be $1.2 trillion (yes, trillion),
or nearly the size of Australia’s GDP.”
More at: blogs.barrons.com
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