Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Rounding Up Last-Minute Analyst Chatter Ahead of Apple Earnings

Apple (NASDAQ: AAPL  ) shares are enjoying a solid day today ahead of its fiscal second quarter earnings report. Part of the optimism may be some reassuring analyst notes making the rounds today. It's not all good, though, as there's some renewed skepticism as well.

Avondale Partners analyst John Bright has upgraded the stock from "market perform" to "market outperform," alongside a $600 price target. Even though Apple is undeniably facing some growth deceleration, concerns appear to already be priced in given Apple's current share price.

Once Apple officially partners with China Mobile, which Bright expects later this year, alongside a cheaper iPhone, Apple could return to earnings growth of 10% to 15% next fiscal year. Bright considers Apple oversold, citing its discount relative to peers and the fact that its cash position comprises a third of its market cap right now.

BGC analyst Colin Gillis likewise boosted his rating from "hold" to "buy," even as he reduced his price target from $550 to $500. Gillis also thinks good news is on the horizon, which will prove to be a positive catalyst for shares. The overwhelming pessimism around Apple right now may be dispelled by the upcoming product refresh cycle.

Sterne Agee analyst Shaw Wu is sticking by a "buy" rating and $610 price target, saying low expectations for the June quarter are already represented in current prices. Wu thinks numerous data points are bottoming out.

Amid cautious sentiment is BMO analyst Keith Bachman, who expresses concern over Verizon's iPhone activation figures from last week. The product mix of iPhone 5 units was disappointing to Bachman, and the resulting negative implications for average selling prices are why he's lowering earnings estimates for this fiscal year.

Citigroup analyst Glen Yeung is staying on the sidelines with a "neutral" rating and $480 price target. Yeung predicts that Apple will report on the low end of its guidance, and demand for the iPhone 5 and full-sized iPad is slowing. The analyst is assuming that the iPhone 5S will be delayed until August or September, and tablet competition is putting pressure on the iPad in China.

Investors are now about a day away from Apple's figures for the March quarter. Which of these analysts will be right?

There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 23, 2013, at 2:04 AM, singaporenick wrote:

    One thing you know for certain-analysts just follow the market pricing and have very little of merit to contribute.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2377623, ~/Articles/ArticleHandler.aspx, 9/30/2016 3:00:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:00 PM
AAPL $112.18 Down -1.77 -1.55%
Apple CAPS Rating: ****
CHL $61.89 Down -0.24 -0.39%
China Mobile CAPS Rating: ****
VZ $52.12 Up +0.06 +0.12%
Verizon Communicat… CAPS Rating: ****