Nomura Cuts Apple (AAPL) PT to $490 Post Q1
Nomura Securities analyst Stuart Jeffrey cut estimates and his price target Neutral-rated Apple (NASDAQ: AAPL) from $530 to $490 following Q1 results.
He comments, "Apple reported broadly in-line Q1 results with strong free cash flow and a solid iPhone ASP the only material surprises. In absolute terms, Apple’s financial performance is still exceptional, but the scope for material earnings upside appears to have gone. Management guidance is now real rather than deliberately conservative, yet still fell short of expectations. To re-accelerate growth, Apple likely needs to launch new products, yet few seem likely before June. The weak Q2 dynamics seem to support our view that Apple is moving into an ex-growth phase in which unit growth is likely to come increasingly at the expense of gross margin declines. An 8x ex-cash multiple on our EPS forecast of $50 plus $89 in excess cash drives our fair value of $490."
FY13E EPS from $45.54 to $44.96; FY14E EPS from $49.69 to $49.82.
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 $514.01 yesterday, with a 52 week range of $419.55-$705.07.
He comments, "Apple reported broadly in-line Q1 results with strong free cash flow and a solid iPhone ASP the only material surprises. In absolute terms, Apple’s financial performance is still exceptional, but the scope for material earnings upside appears to have gone. Management guidance is now real rather than deliberately conservative, yet still fell short of expectations. To re-accelerate growth, Apple likely needs to launch new products, yet few seem likely before June. The weak Q2 dynamics seem to support our view that Apple is moving into an ex-growth phase in which unit growth is likely to come increasingly at the expense of gross margin declines. An 8x ex-cash multiple on our EPS forecast of $50 plus $89 in excess cash drives our fair value of $490."
FY13E EPS from $45.54 to $44.96; FY14E EPS from $49.69 to $49.82.
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 $514.01 yesterday, with a 52 week range of $419.55-$705.07.