Apple (AAPL) PT Raised to $130 Mizuho; Sees In-Line Q4 and Upside to December Qtr
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Mizuho Securities analyst Abhey Lamba previewed Apple's (NASDAQ: AAPL) Q4 results, reiterating a Buy rating and bumping its price target to $130.00 (from $120.00).
Lamba sees revenue and EPS to come in-line to slightly above estimates for the fourth quarter. For total revenue, they expect $46.5-47.5bn vs. estimates of $47bn and guidance of $45.5-47.5bn. They believe gross margin could print toward the upper-end of 37.5-38.0% outlook on improved product mix resulting in EPS of ~$1.65-1.70 vs. consensus of $1.66. AAPL is likely to gain from ~9 days of iPhone shipments and expanded global distribution.
For the December (Q1) quarter, Lamba said estimates have upside as the company could benefit from recent product issues at its primary competitor, Samsung, going into the holiday quarter. They expect holiday quarter revenue outlook of $74-76bn (-2% to +1% Y/Y) based on our estimate of 74.5-75.5mm iPhone shipments vs. consensus of $74bn and 76mm, respectively. Margins are likely to come in-line with estimates resulting in EPS of $3.20-3.25 vs. consensus of $3.18. They believe estimates remain conservative as 7/7+ product cycle and recent competitive dynamics could drive upside to estimates.
Shares of Apple closed at $116.30 yesterday.
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