Oppenheimer Maintains Bullish View on Apple (AAPL) Following Q1; 'Patience Will Be Rewarded'

Oppenheimer analyst Andrew Uerkwitz maintained an Outperform rating and $120 price target on Apple (NASDAQ: AAPL) following earnings after the close. They believe investors' patience will be rewarded, as Apple transitions to a recurring revenue-based model.

Uerkwitz commented, "Apple's December revenues and net profit broke historical record. Greater China sales remained strong with 14% Y/Y growth while emerging markets and Europe saw persisting FX headwinds. However, March guidance reflects the iPhone's first quarter of Y/Y decline—as most Street analysts had feared. We see FY16 as a very challenging year due to macro headwinds in emerging markets and an elongated replacement cycle in developed markets. But we believe growth potential in China and other emerging markets has not been fully realized and will help to strengthen AAPL's 1 billion device installed base. We believe investors' patience will be rewarded, as Apple transitions to a recurring revenue-based model."

The firm lowered FY16/FY17 EPS slightly to $9.29 and $10.44, respectively.

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 $99.99 yesterday.

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