Ticonderoga maintains a 'Buy' on Apple (AAPL); Barometer Sales Fall 8% in April and Miss Historical Averages
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Price: $305.93 +0.22%
Rating Summary:
44 Buy, 29 Hold, 9 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
44 Buy, 29 Hold, 9 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Ticonderoga maintains a 'Buy' on Apple (NASDAQ: AAPL), PT $612.
Ticonderoga analyst says, "For the suppliers that make up our Apple Barometer, March is typically the strongest month of the year, and this has generally been followed by a muted April. This year, April sales declined more than average. For example, unconsolidated April sales for the Apple Barometer declined by 7.5% M/M, well below the six-year average sales increase of 0.4% M/M for the month of April. By comparison, April sales in 2010 rose by 4.4% M/M. Keep in mind that the Apple Barometer reported a much stronger than average month of March at up 35% M/M versus a six-year historical increase of 24%. Therefore, despite a weaker than normal April this year, the Apple Barometer can nearly deliver average sequential sales growth performance in 2Q11 versus historical metrics. We also believe it is important to remember that Apple's outlook for the June quarter called for a sequential sales decline of 7%, much weaker than the eight-year average increase of up 5%."
"Sales Cycle Declines but Remains Strong at Up 113% Y/Y. The sales cycle for the Apple Barometer remained strong during the month of April at up 113% year-over-year, the highest across our Taiwan Tech Barometers. However, this growth does represent a deceleration from the up 141% in March."
For more ratings news on Apple click here and for the rating history of Apple click here.
Shares of Apple closed at $349.45 yesterday.
Ticonderoga analyst says, "For the suppliers that make up our Apple Barometer, March is typically the strongest month of the year, and this has generally been followed by a muted April. This year, April sales declined more than average. For example, unconsolidated April sales for the Apple Barometer declined by 7.5% M/M, well below the six-year average sales increase of 0.4% M/M for the month of April. By comparison, April sales in 2010 rose by 4.4% M/M. Keep in mind that the Apple Barometer reported a much stronger than average month of March at up 35% M/M versus a six-year historical increase of 24%. Therefore, despite a weaker than normal April this year, the Apple Barometer can nearly deliver average sequential sales growth performance in 2Q11 versus historical metrics. We also believe it is important to remember that Apple's outlook for the June quarter called for a sequential sales decline of 7%, much weaker than the eight-year average increase of up 5%."
"Sales Cycle Declines but Remains Strong at Up 113% Y/Y. The sales cycle for the Apple Barometer remained strong during the month of April at up 113% year-over-year, the highest across our Taiwan Tech Barometers. However, this growth does represent a deceleration from the up 141% in March."
For more ratings news on Apple click here and for the rating history of Apple click here.
Shares of Apple closed at $349.45 yesterday.
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