Apple (AAPL) PT Raised to $123 at Nomura; Analyst Asks 'Is it too good to last'
Nomura Securities analyst Stuart Jeffrey raised his price target on Apple (NASDAQ: AAPL) to $123.00 (from $112.00) following results but maintained a Neutral rating saying it is too good to last.
Jeffrey commented, "Apple reported 46% growth in iPhone units and 58% in revenues, with average sales prices (ASPs) up 14% q-o-q. The most extraordinary number is ASP, which appears to imply that the iPhone 6/6 plus accounted for 80% and 64/128GB 71% of sales. This is up by 20% and 32% relative to comparable phones for FY14. Guidance implies a significantly larger sequential decline in units and revenues for iPhone in FYQ2. Gross margins would have increased in 2Q had it not been for forex moves. This is impressive given the lower volumes of phones and suggests that Apple does not see a big shift in product mix toward lower end models this quarter. Upside potential is driven exclusively by iPhone estimates with few surprises in iPad and Mac sales. We risk chasing the stock higher and higher given the strong FYQ1 performance. Yet much of this strength appears one-off in nature to us, resulting in a likely slowing in growth through the year with no growth at all possible in FYQ1 16E. If correct, then the scope for EPS and multiple revisions may have ended for a while."
FY15E EPS from $7.58 to $8.56; FY16E EPS from $7.78 to $8.58.
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Shares of Apple closed at $109.14 yesterday.