Upgrade to SI Premium - Free Trial

Piper Jaffray's Munster Trims PT on Apple (AAPL) to $172; Keeps 'Overweight'

January 27, 2016 6:47 AM

Piper Jaffray analyst Gene Munster maintained an Overweight rating but lowered his price target on Apple (NASDAQ: AAPL) to $172.00 (from $179.00) following Q1 results. The analyst said the guidance implies iPhones better than expected.

Munster commented, "Shares of AAPL are trading down ~3% in the aftermarket despite the company guiding iPhone ahead of buy side expectations. We believe Apple's insistence on broader macroeconomic headwinds may have spooked investors and resulted in the June number not being de-risked as we previously expected. If the macro headwinds continue to be an issue for AAPL, we would expect it to impact the entire market and would still view AAPL as a relative winner even in a down market environment as we believe tech investors would view the safety of Apple's capital return program as a positive. Despite the macro headwinds and June not de-risked, we continue to expect multiple expansion given the number change update of the iPhone 7 and easier comps at the end of the year. While we are adjusting our price target from $179 to $172 on lower EPS, AAPL remains our top pick for 2016."

The firm lowers FY 2016 EPS from $9.23 to $8.72 and FY 2017 EPS from $9.60 to $9.28.

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 $99.99 yesterday.

Categories

Analyst Comments Analyst EPS Change Analyst EPS View Analyst PT Change

Next Articles