Apple (AAPL) Bullish View Reiterated at BMO Capital Following Better iPhone Outlook Offset by Higher Costs
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BMO Capital analyst Tim Long reiterated his Outperform rating and $140 price target on Apple (NASDAQ: AAPL) following in-line Q4 results with stronger guidance. Long notes a better iPhone outlook was offset by higher costs.
Long commented, "Apple reported in-line September results, while strong December revenue guidance was mostly offset by a lower margin guide. We are impressed by the strong iPhone ASP outlook, which helps amplify the impact of units returning to growth in the December quarter. Our FY2017 EPS estimate remains unchanged at $9.24, and we are establishing a FY2018 estimate of $9.77."
He added, " September iPhone shipments of 45.5 million were better than our/ consensus estimates for 44.0 million/45.0 million, though at a slightly lower ASP compared with our estimate. Management typically does not guide iPhone units, but we now model December units at 78 million, above our/consensus prior estimate of 76 million. Additionally, management commentary suggests ASP strength, and our new estimate of $684 is well above our prior $655 estimate."
Shares of Apple closed at $118.25 yesterday.
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