RBC Thinks Apple Inc (AAPL) Doesn't Need a Powerful iPhone 7 Upgrade For The Stock To Work
- Futures fall on Brexit worries, Trump's dollar comments
- BAT Reaches Deal to Acquire Reynolds American (RAI) for $49 Billion
- Morgan Stanley (MS) Tops Q4 EPS by 17c
- Trump, Brexit uncertainty hit stocks and dollar, gold jumps
- Noble Energy (NBL) to Acquire Clayton Williams Energy (CWEI) for $2.7B in Cash and Stock
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
RBC Capital analyst, Amit Daryanani, reiterated his Outperform rating on shares of Apple (NASDAQ: AAPL) but emphasized that he sees the iPhone 7 upgrade cycle as having only minor upgrades and will not see the same healthy uptake as prior cycles. On the flip side, he thinks the stock still works at this level for three reasons:
1) the iPhone 7 will enable moderation in unit declines and perhaps even drive low-single digit unit growth
2) gross-margins should be stable due to improving post Sept-qtr as f/x headwinds ease and mix becomes more favorable
3) in a low rate environment, AAPL’s commitment to return the majority of its $60B + of FCF to shareholders annually will enable value interest
No change to the price target of $115.00
Shares of Apple closed at $105.87 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- FBR Capital Remains Bullish on JPMorgan (JPM) Following 4Q EPS Beat
- Morgan Stanley Lowers Apple (AAPL) 2017 iPhone Estimates, Sees March Qtr Guidance "Likely Below Consesnsus Estimates"
- Ionis Pharma (IONS): Cutting PT But Improving Fundamentals - BMO
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesRBC Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!