Apple (AAPL): 6 Reasons Apple Should Outperform into Earnings - Wells Fargo
Get Alerts AAPL Hot Sheet
Rating Summary:
39 Buy, 25 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 17
Join SI Premium – FREE
Wells Fargo analyst, Maynard Um reiterated his Outperform rating on shares of Apple (NASDAQ: AAPL) and likes the setup heading into earnings for 6 reasons:
1) the analyst believes expectations remain very low
2) supply chain could be better vs expectations (Apple build orders are typically not overly conservative)
3) limited iPhone 7 form factor change could mitigate a cyclical decline in gross margins
4) carrier competition should help drive iPhone units as two year contracts come up for renewal
5) December quarter Consensus looks conservative even when assuming units per carrier come in modestly above both the 5s and 6s (which are down cycles)
6) comps start to get easier
Despite the positive outlook he cut his valuation range to $115 - $125 from $120 - $130 but this new PT still represents ~20% upside.
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 $99.83 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Maxim Group Starts Apple (AAPL) at Hold, 'Dead Money'
- Barclays Reiterates Overweight Rating on United Airlines (UAL)
- Atos SE (ATO:FP) (AEXAY) PT Lowered to EUR1.70 at CFRA
Create E-mail Alert Related Categories
Analyst Comments, Analyst PT ChangeRelated Entities
Earnings, Wells FargoSign 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!