Barclays Reiterates an 'Overweight' on Apple (AAPL); Expecting Solid March Quarter with Conservative Guide

Barclays reiterates an 'Overweight' on Apple (NASDAQ: AAPL), PT $450.

Barclays analyst says, "We continue to believe that Apple's valuation is attractive and that the shares can benefit from strong iPad and iPhone demand, Mac share gains, significant international expansion, and a pipeline of new innovations...Apple Likely to Report Solid Quarter on April 20; but Expect Conservative Guidance: Despite several layers of recent noise and concern around Japan, components, and new product timing, we expect Apple to report solid C1Q results on 4/20. For Apple's C1Q, we estimate EPS of $5.10 based on 68% y/y revenue growth to $22.7B and gross margin of 38.8%."

"For F3Q, we are comfortable with our EPS estimate of $5.44 on 59% y/y revenue growth to $25B but we expect Apple to maintain its practice of guiding well below consensus for EPS with conservative gross margin forecasts as well - especially given the situation in Japan and rising component prices. Apple's revenue guide, while above consensus last quarter, is likely to be below our estimate for F3Q."

For more ratings news on Apple click here and for the rating history of Apple click here.

Shares of Apple closed at $332.40 yesterday.

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