Barclays Maintains an 'Overweight' on Apple (AAPL); What's Ailing Apple? Likely Time to Buy
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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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Barclays maintains an 'Overweight' on Apple (NASDAQ: AAPL), PT $465.
Barclays analyst says, "We wanted to address the reasons we believe Apple has underperformed the sector since February..."Our supply chain analysis continues to point toward Apple launching its next iPhone in the September time frame. We do not believe the changes will mark a major form factor change at this time and view a bigger upgrade cycle as coming in 2012 when 4G is more prevalent. We believe that the potential "4S" model in 2011 will be 3G and feature a faster processor, an upgraded 8MP camera and be optimized for use with the new iOS 5..."
"Despite the performance of the stock in 1H11, we continue to believe Apple is the best growth play in the IT Hardware segment - with prospects for double digit organic revenue growth for several more years with significant support from international sales. We are maintaining our price target of $465 based on 14x our FY12 EPS estimate of $28 excluding interest income but adding back cash. Inside we show how we believe that 2011 feels much like 2006 when investors were concerned about the transition in Macs toward Intel processors (2011 marks an unannounced shift to QUALCOMM (Nasdaq: QCOM))." (Barclays lowers FY11 EPS estimate from $24.30 to $24.07)
For more ratings news on Apple click here and for the rating history of Apple click here.
Shares of Apple closed at $331.23 yesterday.
Barclays analyst says, "We wanted to address the reasons we believe Apple has underperformed the sector since February..."Our supply chain analysis continues to point toward Apple launching its next iPhone in the September time frame. We do not believe the changes will mark a major form factor change at this time and view a bigger upgrade cycle as coming in 2012 when 4G is more prevalent. We believe that the potential "4S" model in 2011 will be 3G and feature a faster processor, an upgraded 8MP camera and be optimized for use with the new iOS 5..."
"Despite the performance of the stock in 1H11, we continue to believe Apple is the best growth play in the IT Hardware segment - with prospects for double digit organic revenue growth for several more years with significant support from international sales. We are maintaining our price target of $465 based on 14x our FY12 EPS estimate of $28 excluding interest income but adding back cash. Inside we show how we believe that 2011 feels much like 2006 when investors were concerned about the transition in Macs toward Intel processors (2011 marks an unannounced shift to QUALCOMM (Nasdaq: QCOM))." (Barclays lowers FY11 EPS estimate from $24.30 to $24.07)
For more ratings news on Apple click here and for the rating history of Apple click here.
Shares of Apple closed at $331.23 yesterday.
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