Cantor Fitzgerald Defends Apple (AAPL); Valuation 'Irrational'

Cantor Fitzgerald analyst Brian White reiterated his Buy rating and $195 price target on Apple (NASDAQ: AAPL) amid the recent sell-off. The analyst said the overblown China concerns and market malaise creates an irrational valuation.

White commented, "Growing fears regarding China have taken Apple's stock to what we view as severely depressed valuation levels (just over 7x our CY:16 EPS estimate) and even if EPS estimates for CY:16 are only 50% of our current projections, the stock is trading at just 14.5x our CY:16 EPS projection and similar to the S&P 500 Index. Given our view on the longevity of this larger iPhone cycle, the ramp of Apple Watch, new expansion opportunities across China, emerging opportunities in India, increasingly challenged competitors, relatively modest market share and an ever strengthening global brand, we highly doubt even a global recession would drive our CY:16 EPS projections to come in 50% below our projections."

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 $105.76 yesterday.

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