RBC Thinks Apple Inc (AAPL) Doesn't Need a Powerful iPhone 7 Upgrade For The Stock To Work
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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.
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