Apple's Early Warning Prior to Early Inception at the Beginning of the Month, China's focus was on the economic downturn and decline in iPhone sales, causing the panic situation in the market. Apple's latest financial report announced that although revenue, profits and prospects are not optimistic, they generally allow Wall Street to cheer! The response of many analysts to Apple's effect is "better than expected" and not as bad as expected.
In the eastern United States, the next day after Apple's revenue statement was published, Apple's stock price (AAPL-US) rose nearly 5% on Wednesday (30.) after the analytical report came out one by one.
Many analysts mostly neglect Apple's sales for the first time, no longer counting the iPhone, iPad, and Mac sales, but Apple's profitability in displaying its services should not be underestimated.
JPMorgan Chase Samik Chatterjee mentioned: "The gross margin of the service department is 62.8%. A new flash of hope reveals investors' expectations about the inner value of Apple's shares."
Morgan Stanley's Analyst Katy Huberty has posted a post on Apple's Revenue Report, "The Reasons for More Apples," the article says: "It's important that Apple's earnings make it easier for investors to perceive recent major issues – weaken the iPhone demand, Gross Margin Risk and Growth services have slowed down.
Bank of America analyst Wamsi Mohan said: "According to Apple's earnings estimates, we estimate that iPhone deliveries will be around 41 million units in the second quarter of the fiscal year, and Apple may have a strong jump, although investors can pay attention to services. marks. "
UBS analyst Tim Arcuri raised the target price from $ 180 to $ 185 and said: "Apple's recent stock price should have a positive response, because prospects for earnings are better than the worst-worried.
Analyst Bernstein Toni Sacconaghi commented: "We are surprised by Apple's post-market share, which has risen by more than 5%, as net profit per share is expected to drop by 5%, which means that Apple's current price is lower than yesterday ( The daily increase was more than 10%, which was more than Apple's 5-year relative PE indicator (P / FE) and EV / FCF (Company Value / P / E).
Sacconaghi warned: "It will increase by 8% in 2020. The annual growth rate will be 14% from 2015 to 2017. The growth rate of Apple's installed base seems to have slowed down last year, which will be a consequence the growth of future business services, highlighting Apple's new launch. The necessity of the service. "
Citi analyst Jim Suva also mentioned: "Is Apple a service company? No … Apple is an IT hardware company that provides quality services related to Apple products. Without Apple's products, it's difficult to have its services if the Apple Service is to grow for more than 50% over the next few years and will still do less than 25% of total sales.
For Apple's share rating, 2 out of 8 investment banks recommended an increase, two suggested buying, 1 was flat and 2 were neutral.
- Morgan Stanley – rating "overweight", target price $ 197
- JP Morgan Chase – rating "overweight"
- Citi – Buy a rating of 170 USD
- UBS (Buy Now) with a target price of 185 USD
- Bernstein – Rating "Market Performance"
- Bank of America – Neutral rating
- Goldman Sachs – Neutral rating
- Wells Fargo – "Neutral" rating