“Shares of Apple Inc. have dropped more than 3 percent after a Nikkei report showed that the iPhone maker’s second half build plans are likely to shrink to 70–80 percent of the level reached in the same period last year,” Manikandan Raman reports for Benzinga.

“But, Kulbinder Garcha of Credit Suisse urged investors to buy the weakness in the shares as the news was already expected. The analyst reiterated his Outperform rating and $150 price target on the stock,” Raman reports. “‘Acknowledging near term weakness, we believe this reset provides an opportunity and we see a trough valuation on a P/E ex cash basis of 8.5x, suggesting support at $95,’ Garcha wrote.”

“The analyst said the iPhone business should recover in 2017,” Raman reports. “‘Specifically, we believe installed base growth, which has grown 80 percent since 2013, should drive unit growth beginning with the iPhone 7,’ Garcha elaborated.”

Read more in the full article here.

MacDailyNews Take: The Nikkei “report” didn’t “show” anything. It was the usual collection of unnamed sources and baseless claims using single data points that prove nothing.

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