With 5 hours to spare, Mizuho bumps Apple price target

From a note to clients by analyst Abhey Lamba that landed in my inbox Thursday morning:

Apple reports results on Thursday, February 1 after market close. Heading into the print, iPhone ASP expectations seem very low; based on our conversations, we see potential unit/ASP upside driving results above consensus for F1Q. This could carry through to F2Q18, with expected guidance printing in-line with to modestly above consensus as well. We acknowledge fundamental trends as well as a potential repatriation-related premium; however, we think these dynamics are largely reflected in current valuation.

We expect total revenue of $89-91bn vs. guidance of $84-87bn and consensus of $86bn on potential iPhone ASP upside. Gross margins are likely to print toward the middle of guidance of 38.0-38.5%. Given revenue upside, we believe EPS could print around $3.95-4.05 vs. consensus of $3.80.

Maintain Neutral rating while raising price target to $175 from $160.

My take: A little late. Didn’t the stock recently break $180?

4 Comments

  1. Paul Chou said:
    So Q1 89-91bn, well above estimate; Q2 above expectation of ~68bl, which would dispel any concerns of supply-chain slow down. Yet with all that he sets a target of $175.

    I don’t understand all these analysts’ mumbo-jumbo – isn’t that just a fancy way of saying Apple is way overvalued, EVEN if it hits the ball out of the park?

    0
    February 1, 2018

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