BGC, Avondale upgrade Apple to buy

“Apple Inc. was upgraded to buy ratings at BGC Partners and Avondale research on Monday,” Dan Gallagher reports for MarketWatch.

“In a note to clients, BGC analyst Collin Gillis noted the sharp decline in Apple’s shares and said his move was in part to take advantage of the ‘weakness’ in the stock,” Gallagher reports. “He also reduced his estimates for iPhone and iPad sales for the June quarter, and lowered his price target to $500 from $550. ‘That said, in front of the next product cycle, and any positive news could be a catalyst to move the stock up closer to $500,’ he wrote.”

Read more in the full article here.

Tiernan Ray reports for Barron’s, “Avondale’s John Bright raised his rating to Market Outperform from Market Perform, and reiterating his $600 price target, writing that ‘We acknowledge AAPL’s decelerating earnings, but we believe the stock reflects the increasing competitive pressures and tough margin comp in FY13.'”

“Bright thinks Apple could return to 10% to 15% earnings growth in the fiscal year starting in October, based on expectations for the iPhone to arrive officially at China Mobile, as well as new product introductions, including a lower-cost iPhone, a roll-out of mobile payment capabilities, and a television set,” Ray reports. Bright cut this year’s EPS estimate to $42.66 from a prior $45.58 estimate, on revenue of $173.8 billion. ‘Shares are trading at just ~9x and ~8x our C13 and C14 EPS estimates, a discount to peers at ~14.5x and ~12x despite similar growth and having 1/3 of its value in cash, and we believe shares have been oversold,’ writes Bright.”

Read more in the full article here.

5 Comments

  1. Come on MDN, Collin Gillis of BGC is a known Apple-basher. He’s always on CNBC talking down Apple, so he can buy on the cheap and ride the slingshot back up.

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