Apple bear raises his 12-month price target

To $120 from $102. Apple closed Wednesday at $140.68.

From a note to clients by Rosenblatt Securities analyst Jun Zhang that crossed my desk Wednesday:

  • We believe that Apple has recently reduced their June quarter production forecast by around 8-10%, mainly for the iPhone 7. Accordingly, we reduce our June quarter revenue estimates.
  • We also believe that Apple has an aggressive iPhone 8 production forecast targeting 100-110M units in 2H17. We raise our September quarter revenue estimates, but maintain our FY 2017 revenue estimates.
  • In our view, the iPhone 8 OLED model will have a better cycle than the iPh-one 7, and recent positive sentiment already reflects iPhone 8 optimism.
  • Slowing demand in China and increasing competition from Samsung this year might limit iPhone 8 sales growth. Further hardware upgrades might not be able speed up the overall smartphone upgrade cycle.

Maintain Neutral rating, raise price target to $120 from $102. 

Note: Apple usually reduces iPhone production in the June quarter.

5 Comments

  1. Robert Paul Leitao said:

    Huh? I’ve read the excerpt from the analyst’s comments more than three times and come back to the same response.

    1
    April 20, 2017
  2. hdediu@asymco.com said:

    Baffling. I’ve been reading these types of analyses for decades and have never managed to understand them.

    1
    April 20, 2017
  3. David Emery said:

    Do bears s**t in the woods? This one certainly does!

    0
    April 20, 2017

Leave a Reply