“Many analysts have denigrated Apple’s revenue growth prospects by emphasizing short-term experience, sometimes citing sequential growth as a basis for assessing financial health,” Bastianpillai writes. “Over the last year, currency headwinds have significantly impacted Apple sales and demand… This heavily distorts financial analyses that are based on the prior 12 months experience.”
“It is really important to look at a broader experience period to mitigate the impact of this distortion and allow for a truer financial assessment,” Bastianpillai writes. “There are many strong indicators of Apple Revenue and Earnings growth over the next year. Importantly, it is likely that Apple will announce an all-time revenue and earnings record for the next quarter. This is supported by Apple’s guidance, robust cash flow and growth drivers such as reintroduction of carrier subsidies and incremental LTE adoption in China. Achieving an all-time record should materially drive the stock price. A 12 month target of $130 is reasonable which should result in an approximate 15% annual return after accounting for dividends.”
Much more in the full article here.
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