“We do think the P/E could rise over time as Apple is perceived more like Nike than like Nokia.” — UBS analyst Steve Milunovich
From CNBC (still waiting for the original note):
UBS raised its price target to $210 from $190 for Apple shares, representing 12 percent upside to Thursday’s close. The firm cited the premium nature of the company’s brand.
The firm’s consumer survey “results indicate weak iPhone buying intentions but a rising mix, so continued unit pressure but potential for a flat-to-up ASP [average selling price],” analyst Steven Milunovich said in a note to clients Friday. “Buying intent is down slightly across the world though the mix of iPhone X appears strong. The brand remains aspirational. … We do think the P/E could rise over time as Apple is perceived more like Nike than like Nokia.”
“Although the next big thing is not in sight, the consistency and optionality of the Apple franchise could improve the P/E over time,” he said. “We think the narrative is shifting from iPhone units to a consistent franchise with low single-digit hardware growth augmented by higher-margin, faster growing services.”
Maintains Buy rating, raises price target to $210 from $190.
My take: To think that Milunovich’s target in September 2016, less than two years ago, was $127.