Apple (AAPL) PT Lowered to $117 at BMO Capital
BMO Capital analyst Tim Long lowered estimates and his price target on Apple (NASDAQ: AAPL) to $117.00 (from $130.00) following disappointing Q2 results and outlook but maintained an Outperform rating.
Logn commented, "The feared big unit miss that did not happen in December or March is hitting Apple in June. We now have units of 38 million for June, a miss of six million, half of which can be explained by channel inventory reduction. Regardless, we are taking a more cautious view on units since the replacement rate seems to be extending faster than we had modeled. The 80% growth in installed base for iPhones over the last two years is better than we had modeled, though our 50%+ estimate did not capture used phones. Our overall thesis is unchanged. We still believe iPhone subscribers will grow by 10%, representing a sharp deceleration from the last two years. This should result in mid-single digit unit growth assuming a longer phone life. The weaker results add caution to near-term dynamics for Apple supply chain stocks QCOM, SWKS and QRVO, which we also discuss in the note."
FY2016/FY2017 EPS estimates go to $8.24/$9.29 from $9.20/$10.25.
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 $104.35 yesterday.