Canaccord Genuity on Apple (AAPL): JMPing Ship
Tweet
Share
E-mailGet Alerts AAPL Hot Sheet
Price: $315.94 +0.81%
Rating Summary:
45 Buy, 29 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 19 | New: 37
Rating Summary:
45 Buy, 29 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 19 | New: 37
Join SI Premium – FREE
Canaccord Genuity on Apple (Nasdaq: AAPL): JMPing ship.
Canaccord analyst said, "JMP Securities did the seemingly unthinkable on Wednesday, downgrading Apple out of fear the Japan crisis will compound a recent deceleration in production at the company's main contract assembler, Hon Hai Precision. JMP noted that sales growth at Foxconn (FXCNF) parent Hon Hai has fallen from 84% year-over-year in December to 37% in January and 26% in February, a “material deceleration”. The firm is not sure of the reason for this deceleration, but said it could be any number of things, including the “lack of lines for Verizon (NYSE: VZ) iPhone sales, or the seasonality around the iPod, or the freezing of iPad sales in advance of iPad 2.” JMP thinks it’s possible that Apple will report “merely in-line” sales of the iPhone this quarter, thanks to competition from units running Google’s (Nasdaq: GOOG) Android operating system. It noted that disclosures during the iPad 2 introduction last week indicated Apple had sold 100 million iPhones worldwide, suggesting the quarter is tracking below the firm’s estimate of 15 million units. For the most part, then, JMP’s downgrade wasn't really about last week’s earthquake, but rather about possible disappointment surrounding Apple’s March-quarter report that was building for some months. In any event, “After a five-year track record of beat and raise an average of 23% [at Apple], we should take note of the deceleration,” it said. Interestingly, Business Insider noted earlier this week that Apple shares failed to close above their 50-day moving average for the first time since September 2, 2010. The stock had gained 50% between August 24 and its March 4 closing high."
Canaccord analyst said, "JMP Securities did the seemingly unthinkable on Wednesday, downgrading Apple out of fear the Japan crisis will compound a recent deceleration in production at the company's main contract assembler, Hon Hai Precision. JMP noted that sales growth at Foxconn (FXCNF) parent Hon Hai has fallen from 84% year-over-year in December to 37% in January and 26% in February, a “material deceleration”. The firm is not sure of the reason for this deceleration, but said it could be any number of things, including the “lack of lines for Verizon (NYSE: VZ) iPhone sales, or the seasonality around the iPod, or the freezing of iPad sales in advance of iPad 2.” JMP thinks it’s possible that Apple will report “merely in-line” sales of the iPhone this quarter, thanks to competition from units running Google’s (Nasdaq: GOOG) Android operating system. It noted that disclosures during the iPad 2 introduction last week indicated Apple had sold 100 million iPhones worldwide, suggesting the quarter is tracking below the firm’s estimate of 15 million units. For the most part, then, JMP’s downgrade wasn't really about last week’s earthquake, but rather about possible disappointment surrounding Apple’s March-quarter report that was building for some months. In any event, “After a five-year track record of beat and raise an average of 23% [at Apple], we should take note of the deceleration,” it said. Interestingly, Business Insider noted earlier this week that Apple shares failed to close above their 50-day moving average for the first time since September 2, 2010. The stock had gained 50% between August 24 and its March 4 closing high."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Apple has talked to PrismML about ways it could use its technology - The Information
- Apple (AAPL) New Short Idea at Hedgeye
- Ionis Pharmaceuticals (IONS) PT Lowered to $90 at BofA Securities
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
JMP SecuritiesSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
