“While many investors have concerns about tough comparisons between the upcoming fourth quarter and last year’s fourth quarter, Robert W. Baird analyst Will Power said he thinks iPhone sales will be a catalyst that pushes [AAPL] shares higher,” Michelle Fox reports for CNBC. “‘The company had an enormous iPhone shipment quarter in that quarter a year ago and I think there are questions and concerns as to whether they can really beat that. We think they can and as a result, combined with other factors, we like the stock here on this weakness,’ Power said Tuesday in an interview with CNBC’s ‘Squawk Alley.'”
“Couple that with rumors about Apple TV and other opportunities in 2016, and he said he likes the setup heading into next year,” Fox reports. “Analyst Steve Milunovich, who has a ‘buy’ rating on Apple, also sees the new iPhone as a catalyst. While there will clearly be some slowdown in revenue expansion, iPhone sales growth could beat expectations, he told ‘Squawk on the Street’ Tuesday. He’s anticipating Apple will sell 245 million of its smartphones next year, a 6 percent increase.”
“Milunovich, of UBS, also has confidence that there is downside support for the stock, and noted that it is trading at about 12 times next year’s earnings. ‘Unless the fundamentals are really different from what we think they are, there is not much downside. We’re just waiting for a catalyst on the upside. We think some iPhone growth could be part of that catalyst,’ said Milunovich,” Fox reports. “Milunovich pointed out that Apple has said only 27 percent of its iPhone users have upgraded. Therefore he thinks there will be good upgrade demand.”
Read more in the full article here.
MacDailyNews Take: Will Power will power AAPL via sheer willpower.
And that makes at least as much sense as what we’ve seen happening with AAPL since the company reported record Q3 earnings last month.
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