Apple (AAPL) PT Trimmed to $155 at Canaccord Genuity; Calls Results 'Solid'

Canaccord Genuity analyst T. Michael Walkley trimmed his price target on Apple (NASDAQ: AAPL) to $155.00 (from $160.00) following results but maintained a Buy rating calling the results 'solid'.

Walkley commented, "ple reported strong Q3/F’15 results above our and consensus estimates. We believe the slightly lower than anticipated iPhone unit sales reported in the June quarter and implied in the September quarter guidance were primarily due to Apple lowering channel inventory ahead of the next-generation iPhone launch likely exiting the September quarter. In fact, we believe the current iPhone 6 and upcoming iPhone 6s should continue to post strong sales and high-end smartphone market share gains, as we believe the iPhone 6/ 6 Plus smartphones are generating very strong replacement sales from existing iPhone consumers who slowed the pace of iPhone upgrade purchases during the relatively disappointing iPhone 5 and 5s product cycles. In fact, with only 27% of the iPhone installed base having upgraded to the iPhone 6/6 Plus devices by Q3/1F’15, we anticipate continued strong replacement sales through 2015. Further, consistent with management commentary, we anticipate continued high-end smartphone market share gains for the larger screen iPhone 6 devices as our surveys indicate a greater mix of Android smartphone consumers are switching to the iPhone 6 smartphones than during iPhone 5 series launches. We believe these trends should grow the iPhone installed base to over 500M exiting C2015, and this base should drive strong future iPhone replacement sales, earnings, as well as cash flow generation to fund strong long-term capital returns programs. We reiterate our BUY rating but lower our PT to $155 as we slightly lower our C’15/C’16 iPhone shipment estimates following the Q3/F2015 results and guidance."

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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