“As expected, the sell-side analysts skipped by Apple’s record-breaking results for the December quarter — the most profitable in the history of free-market capitalism — and focused instead on the company’s guidance for the March quarter, which some described as better than expected,” Philip Elmer-DeWitt reports for Fortune.
“Most analysts kept their positive ratings but cut their price targets,” P.E.D. reports. “In pre-market trading, Apple hares were down sharply.”
Katy Huberty, Morgan Stanley: Better than feared. We are positively biased given better than feared March guidance, a growing user base, accelerating services revenue and new iPhones later this year. Guidance incorporates a cautious macro outlook and sets up for a stronger iPhone 7 cycle… Management spent a lot of the conference call describing a “turbulent” global macroeconomic environment as major markets like Brazil, Russia, Japan, Canada, Southeast Asia and the Eurozone experienced slowing economic growth in 2H15. Most important, Greater China, especially Hong Kong, saw economic softness beginning in December. Overweight. Cut price target to $135 from $143.
Many more analysts’ notes in the full article here.
MacDailyNews Take: iPhone will be just fine.
SEE ALSO:
Piper Jaffray: iPhone resume growth in 2016 despite poor macroeconomy – January 27, 2015
Apple highlights services in search of Wall Street’s love – January 26, 2016
Apple reaps $18.4 billion quarterly profit, the largest ever recorded by a single public corporation – January 26, 2016
Apple beats on earnings; sets all-time records for revenue, net income, and EPS – January 26, 2016
MacDailyNews presents live notes from Apple’s Q116 Conference Call – January 26, 2016
Apple beats Street with all-time record quarterly earnings – January 26, 2016
Better than feared? Geez, Katy, next time reveal your “confidential” supplier checks. Ya, name names. And do your job better.
After starting all that trash talk, Katy Huberty cuts her outlook a measly $8 per share, to $135. Overreact much, Katy?
Yo, SEC — she ought to do jail time !
Huberty was in the top 5 of both professional and amateur analysts who correctly estimated Apple’s 1Q results.
If AAPL was measured in 2 year increments, you can see the normalized growth curve. To say that we’ve reached peak AAPL is so statistically dishonest you don’t even have to pass stats 101 to see the normalized curve – it is freaking textbook.
It’s all about hype. Netflix and Amazon are growth prospects so have future potential, whereas Google has a strong hold in market that is difficult to compete in. M$ is still doing well in stock since they have their monopoly (if slowly declining) plus stronger dividend position (2.5% return based on current share value).
Apple’s dividend is about 2.2.% based on $94 share value. So quite a lot less than M$.
We may see an increased dividend yield in April so help boost the stock value.
Apple should stop the buy backs and put the money into increased dividends.
I don’t know where you’re looking but Amazon and Google are doing about as well as Apple is.
Are the realization dates for these price targets ever revealed? 12 months? In the last few years Apple has barely touched the bottom of the lower targets.