“Pacific Crest’s Andy Hargreaves this morning reiterates an Overweight rating on shares of Apple, but trims his price target to $127 from $132, after cutting estimates to reflect what he thinks is ‘stable’ but ‘soft’ demand for the company’s products, the iPhone in particular,” Tiernan Ray reports for Barron’s.
“Hargreaves writes that his ‘checks’ suggest sales for the fiscal Q2 ending this month are trending to the ‘low end’ of a forecast range of $50 billion to $53 billion offered by the company back on January 26th,” Ray reports. “Hargreaves cuts his Q2 iPhone unit shipment estimate to 47.5 million from 49 million, and cuts his total company revenue estimate to $50 billion from $51.3 billion.”
“Despite the cut, Hargreaves thinks that ‘valuation and customer stickiness continue to make AAPL attractive’ to own,” Ray reports. “He looks forward to an “iPhone 7,” presumably this fall.”
Read more in the full article here.
MacDailyNews Take: We’ll be happy to get past the ‘tough compare’ this quarter.