In a note to clients, White wrote:
The stock is trading at less than 6x (ex-cash) our CY14 EPS estimate and we believe there is quite a bit of bad news priced into the stock at current levels, while estimate resets lower the bar for the future. At the same time, we believe the profit and sales cycle will reach the bottom in 2QFY13… For 2QFY13, Apple expects revenue of $41 billion to $43 billion (Street is at $45.38 billion) and inline with our $41.9 billion projection. Given our expectation of a shorter launch cycle for the iPhone and iPad, we recently adjusted the seasonality in our model and particularly for the March quarter, which jibes with the outlook that Apple provided last night. As such, we are maintaining our 2QFY13 revenue estimate at $41.9 billion, while adjusting our EPS projection to $10.00 from $10.37 (Street is at $11.67). For FY13, we are slightly increasing our revenue estimate to $192.1 billion from $191.9 billion, while trimming our EPS projection to $47.73 from $49.04.
Tons more AAPL analysts’ price target and rating changes in the full article here.
The Street beats Apple – January 24, 2013
Adam Lashinsky: What Apple’s earnings really mean, and what’s that $9 billion in ‘equipment’ for? – January 24, 2013
Apple’s results aren’t the total disaster implied by the market meltdown – January 24, 2013
Apple stock drops 12%, trips short-sale circuit breaker – January 24, 2013
Apple CEO Tim Cook: ‘No technology company has ever reported these kinds of results’ – January 24, 2013
Apple’s all-time record earnings drag down NASDAQ futures – January 24, 2013
Gundlach: Apple ‘a broken company’ – January 24, 2013
Apple’s all-time record quarterly earnings disappoint – January 23, 2013
Jim Cramer: ‘Without Steve Jobs, Apple is just another stock, it’s not magical anymore’ – January 23, 2013
After posting new all-time record revenue, Apple shares collapse in after-hours trading – January 23, 2013
MacDailyNews presents live notes from Apple’s Q113 Conference Call – January 23, 2013
Apple reports record results: $54.5 billion revenue, $13.1 billion profit, $13.81 EPS – January 23, 2013