Apple (AAPL): Monitor Soft in May - Drexel Hamilton

As Apple (NASDAQ: AAPL) enters the final months of the iPhone 6-series cycle before the iPhone 7 ramp begins, Drexel Hamilton analyst, Brian White, expects weakness in the supply chain. The analyst's Apple model estimates a bottom in the sales cycle, profit cycle and iPhone unit cycle in the June quarter.

May sales for The Apple Monitor fell by 1% MoM and were weaker than the average 5% increase over the past eleven years. Last May, sales for the Apple Monitor rose by 2% MoM. Also, Apple supplier Hon Hai reported an 8% MoM decline in May sales and weaker than the average of down 4% over the past eleven years but better than the down 14% in May 2015.

Moreover, they believe the "gloom and doom" sentiment engulfing the Apple story has reached extreme levels this year and we believe the stock represents an exceptional value. No change to Buy rating or $185 PT.

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 $99.03 yesterday.

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