Apple (AAPL) iPhone Growth Continues on China, Low Installed Base Penetration, and Android Switchers - Stifel
Stifel analyst Aaron Rakers reiterated a Buy rating and $150 price target on Apple (NASDAQ: AAPL) following Q4 results noting iPhone growth continues on China momentum, low installed base penetration and android switchers.
Rakers commented, "While concern over slowing / negative iPhone growth is likely to remain a topic of much debate (e.g., focus on inventory replenishment vs. sell-thru now in focus for F1Q16), we believe Apple’s results and outlook should be viewed positively – especially w/ Apple shares trading at ~8.3x ex-cash on our F2017 EPS estimate. Apple reported F4Q15 results at $51.501B / $1.96 vs. our $51.045B / $1.88 estimate (street: $51.0B / $1.88). Apple’s 22.3% y/y revenue growth includes a ~8pp negative FX impact. GM% of 39.9% was ahead of the 38.5%-39.5% guide. Apple is guiding F1Q16 revenue at $75.5-$77.5B vs. our $75.6B estimate (street: $76.8B); GM% expected to be 39%-40% vs. our prior 39.7% estimate. Apple’s guide implies EPS of $3.10-$3.30/sh. vs. our prior $3.10 estimate (street: $3.23/sh.). With our iPhone ship estimates relatively unchanged and a slight increase in our ASP ($/unit) estimates, we adjust our F2016 and F2017 estimates from $248.9B / $9.73 and $263.1B / $10.44 to $248.9B / $9.85 and $266.6B / $10.75, respectively."
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Shares of Apple closed at $114.55 yesterday.