Apple (AAPL) PT Lowered to $120 at Canaccord Genuity

Canaccord Genuity analyst Michael Walkley lowered his price target on Apple (NASDAQ: AAPL) to $120.00 (from $130.00) Thursday but maintained a Buy rating. The analyst also lowered earnings estimates for 2016 and 2017.

Walkley commented, ""Based on our survey work, we believe consumers continue to delay purchases of new iPhones ahead of the iPhone 7 launch. However, our surveys indicated steady overall sales due to increased promotions and a stronger mix of the lower ASP iPhone SE. While we anticipate a lower replacement rate through September as consumers delay upgrading their iPhones ahead of the anticipated iPhone 7 launch, we do anticipate recovering sales with the iPhone 7 launch.Longer term, we believe the current iPhone 6 and iPhone 6s products have enabled Apple to materially increase its share and installed base of the premium tier smartphone market. We believe these trends resulted in the iPhone installed base growing to over 500M exiting C2015 with overall connected Apple devices exceeding 1B users. This impressive installed base should drive strong future iPhone replacement sales and earnings, as well as cash flow generation to fund strong long-term capital returns programs of $250B through F2018. However, we anticipate a stronger upgrade cycle in C2018 versus our modest expectations for the iPhone 7, resulting in our lowered estimates. We reiterate our BUY rating but decrease our price target to $120."

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 $95.55 yesterday.

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