Apple (AAPL) Outlook In-Line with Buyside Expectations - RBC Capital
RBC Capital analyst Amit Daryanani reiterated his Outperform rating and $130 price target on Apple (NASDAQ: AAPL) noting Q1 was better-than-expected and Q2 guidance was in-line with buyside expectations.
Daryanani commented, "AAPL reported an in-line Dec-qtr and guided Mar-qtr better than buyside expectations (but below street). Stock saw a negative reaction after hours reflecting: 1) macro concerns, a huge shift in tone as AAPL sounded more susceptible to China macro vs. 90-days ago, 2) Services disclosure: fear is are they doing it because iPhone units are ex-growth? Fundamentally, iPhones tracked expectations for Dec-qtr and Mar-qtr is expected to see ~20% unit decline reflecting tougher compares and muted “s” cycle. Positively, gross-margins held in with Dec-qtr at 40.1% and Mar-qtr was guided towards 39.0-39.5%. We think AAPL remains rangebound until we get closer to Apr-qtr (capital allocation update) and beyond that we expect iPhone 7 cycle to drive momentum in H2:16."
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Shares of Apple closed at $99.99 yesterday.