Credit Suisse: Buy on the weakness in Apple shares

“Shares of Apple Inc. have dropped more than 3 percent after a Nikkei report showed that the iPhone maker’s second half build plans are likely to shrink to 70–80 percent of the level reached in the same period last year,” Manikandan Raman reports for Benzinga.

“But, Kulbinder Garcha of Credit Suisse urged investors to buy the weakness in the shares as the news was already expected. The analyst reiterated his Outperform rating and $150 price target on the stock,” Raman reports. “‘Acknowledging near term weakness, we believe this reset provides an opportunity and we see a trough valuation on a P/E ex cash basis of 8.5x, suggesting support at $95,’ Garcha wrote.”

“The analyst said the iPhone business should recover in 2017,” Raman reports. “‘Specifically, we believe installed base growth, which has grown 80 percent since 2013, should drive unit growth beginning with the iPhone 7,’ Garcha elaborated.”

Read more in the full article here.

MacDailyNews Take: The Nikkei “report” didn’t “show” anything. It was the usual collection of unnamed sources and baseless claims using single data points that prove nothing.

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Apple falls anew after iPhone 7 report; loses most valuable crown to Alphabet – May 12, 2016
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Japan’s Nikkei, The Wall Street Journal blow it, get iPhone demand story all wrong – January 16, 2013
Did Apple reduce 4-inch Retina display orders due to improving yields? – January 15, 2013
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Apple iPhone suppliers decline on report orders cut by 50% – January 15, 2013
Apple swoon erases $17 billion from stock market – January 14, 2013
Apple iPhone 5 production cut signaling a new product release? – January 14, 2013
Apple drops to 11-month low on old reports of component cuts – January 14, 2013
The strange math of Apple’s alleged massive iPhone 5 component cuts – January 14, 2013
UBS analysts: Apple iPhone component order reduction ‘old news’ – January 14, 2013
Apple pulls down U.S. futures – January 14, 2013
Apple shares drop below $500 after reported cuts in iPhone 5 parts orders – January 14, 2013


  1. The Apple bulls always acted so smug about how Apple would be immune to falling because of the low P/E, high profits and loads of reserve cash. Wall Street doesn’t care about anything having to do with company fundamentals. It’s all about growth. Whatever company they believe has the most growth is the stock to own.

    Apple has an incompetent CEO who doesn’t know how to attract investors with a cock and bull growth story. Apple is the only big tech company who can’t figure out how to make the company attractive to the big investors. Tim Cook has left loyal Apple investors in a precarious situation. Should they hold on or dump their Apple stock?

    Amazon is the best stock in the world now to own. Jeff Bezos is on fire and is considered the world’s most perfect CEO because he never makes mistakes regarding shareholders. Everything Tim Cook does is considered a mistake and always comes back to haunt shareholders.

  2. Get into AAPL now before its too late!!

    This may not be the absolute bottom but it is far from the top of where this stock is heading!!

    You may ask how?

    1. iPhone is the global mobile device, bar none; the rest are just that ‘the rest’!
    2. iPhone SE is the start of Apple Inc. going for huge market share of mobile devices … the objective to monetise a huge services machine, including their App Stores, Content through TV, Pay
    3. and … when they are ready, release the ‘next big thing’ an Car, the transportation platform for the future!

  3. The iPhone is now a own-for-two-year device, but Wall Street is a one yr. sink or swim mercenary. No growth, abunch of poop for ya. Did someone report that smartphones are going away? Does any other smartphone really have anything on the iPhone? Does any other smartphone company really make any profits? Did another company invent a new wheel to take over? Buy now and stay long in AAPL until there is some real competition. Wall Street is playing you big time.

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