Jefferies Maintained Hold Rating on Apple (AAPL) Following 3Q Beat

Jefferies maintained a Hold rating and $135.00 price target on Apple (NASDAQ: AAPL) following 3Q beat. Analyst Sundeep Bajikar said that although the results beat street estimates, the results and guidance missed higher expectations. on top of that, Bajikar said that checks suggested that Apple is facing strong competition, on a technology basis, in Shanghai.

Bajikar commented, "JuneQ results beat Street estimates, but results and guidance missed higher buy-side expectations. Our checks, most recently at MWC-Shanghai, continue to suggest Apple is benefiting from brand power, which might be stealing focus from otherwise technology/value-driven consumer purchasing decisions, particularly in China. We could become more constructive with higher confidence in the sustainability of brand power."

Bajikar also added, "Our checks at MWC-Shanghai suggest Apple is facing strong competition on a technology basis, from lower-priced Android-powered Smartphones, particularly from Huawei and Xiaomi. However, our checks also suggest consumers in China have favored iPhone over premium offerings from Samsung or lowerpriced domestic alternatives, due to Apple's superior brand image. Apple's Smartphone market share in China has stepped up from ~6% to 18% over the last 9 months, and compares with 37%, 21%, 45%, and 34% in the U.S., Europe, Japan, and Korea, respectively."

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 $130.75 yesterday.

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