Zacks upgrades Apple to ‘Outperform,’ short-term Strong Buy rating

13 years ago

“We are upgrading Apple Inc. (AAPL) to Outperform from Neutral, as we believe Apple has further room for expansion,” Zacks Equity Research writes via Yahoo Finance. “The investment case for Apple is based on its earnings momentum and accelerated revenue growth.”

“Apple has grown leaps and bounds, driven by the success of its iPhones, iPad and increased Mac shipments. We expect the iPhone-driven momentum to continue. Stronger-than-expected iPhone and iPad sales will help Apple grab a larger share of the smartphone market,” Zacks writes. “In our opinion, this is the key to long-term growth and continued appreciation of the stock given the large addressable market. We expect the company to outperform its peers this year. Over the last four quarters, Apple surpassed the Zacks Consensus Estimate by 21.3%.”

Zacks writes, “A majority of the analysts agree that Apple’s fiscal 2011 earnings will exceed previous expectations. Estimates are trending upward, as analysts’ opinions have turned increasingly bullish over the last thirty days. Out of the 47 analysts providing estimates, 34 have raised their estimates for fiscal 2011 over the last 30 days. There was no downward estimate revision. For the second quarter of 2011, 30 of the 43 analysts providing estimates upped their estimates in the last 30 days, with no negative revision… Apple has a Zacks #1 Rank stock, implying a short-term Strong Buy rating.”