Topeka's Brian White Cuts Legendary Apple (AAPL) Price Target
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Price: $423.00 -2.03%
Rating Summary:
52 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 2 | New: 2
Rating Summary:
52 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 2 | New: 2
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Topeka Capital's Brian White cuts his legendary $1,1111 Apple (NASDAQ: AAPL) price target to $888 following Q1 results. He maintained a Buy rating.
White commented, "Last night, Apple reported 1QFY13 results and offered up a 2QFY13 sales outlook that was inline with our model but fell short of the Street's estimates, while margins are expected to be below our projections. As such, we are slightly tweaking our sales estimate higher but taking a modest haircut to our EPS projection. With Apple down 10% in after market trading, the stock is trading at less than 6x (ex-cash) our CY14 EPS estimate and we believe there is quite a bit of bad news priced into the stock at current levels, while estimate resets lower the bar for the future. At the same time, we believe the profit and sales cycle will reach the bottom in 2QFY13."
The firm maintained 2QFY13 revenue estimate at $41.9 billion, while adjusting EPS projection to $10.00 from $10.37 (Street is at $11.67). For FY13, they are slightly increasing revenue estimate to $192.1 billion from $191.9 billion, while trimming EPS projection to $47.73 from $49.04.
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 $514.01 yesterday, with a 52 week range of $419.55-$705.07.
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White commented, "Last night, Apple reported 1QFY13 results and offered up a 2QFY13 sales outlook that was inline with our model but fell short of the Street's estimates, while margins are expected to be below our projections. As such, we are slightly tweaking our sales estimate higher but taking a modest haircut to our EPS projection. With Apple down 10% in after market trading, the stock is trading at less than 6x (ex-cash) our CY14 EPS estimate and we believe there is quite a bit of bad news priced into the stock at current levels, while estimate resets lower the bar for the future. At the same time, we believe the profit and sales cycle will reach the bottom in 2QFY13."
The firm maintained 2QFY13 revenue estimate at $41.9 billion, while adjusting EPS projection to $10.00 from $10.37 (Street is at $11.67). For FY13, they are slightly increasing revenue estimate to $192.1 billion from $191.9 billion, while trimming EPS projection to $47.73 from $49.04.
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 $514.01 yesterday, with a 52 week range of $419.55-$705.07.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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