Apple (AAPL): Wells Fargo Thinks Upside Is In The Stock

October 24, 2016 8:28 AM EDT
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Price: $119.98 -0.08%

Rating Summary:
    59 Buy, 11 Hold, 5 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 17 | New: 10
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Wells Fargo analyst, Maynard Um, reiterated his Market Perform rating on shares of Apple (NASDAQ: AAPL) ahead of earnings. The analyst believes Apple will have to deliver stronger results to drive shares amid high expectations. He expects a good quarter with rev/EPS of
$47.6B/$1.71, above the Street’s $47.0B/$1.65 driven by an accelerated iPhone country launch but limited somewhat by manufacturing constraints as well as strong guidance driven by the extra week in the quarter.

The analyst stated "Our sense is that sentiment is as positive as it had been into the iPhone 6 cycle and thus believe Apple has a low margin of error in delivering results and guidance. Despite our expectation for a strong quarter and outlook as we highlighted in our downgrade, we maintain our Market Perform rating as we believe expectations already embed a strong quarter/outlook, see risk of demand pull-in from the March quarter, and think next year's "off" cycle could result in demand headwinds (absent promotional activity, which would adversely impact gross margins)".

No change to the price target of $112.50.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $116.60 yesterday.

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