Pierre Ferragu looked at Apple at $200 and issued a “Sell.”
This e-mail from New Street Research landed on my desktop Friday:
As promised in February, we have analyses in details how the 2019 air-pocket is materializing and drew conclusions for the stock. We see a strong tactical opportunity to short, as the stock recovered to top-of-the-range multiples, while expectations for 3FQ19 and FY2020 appear already too high. We know the bull case on the stock is about services, but further disappointment in iPhone revenues would be unlikely to leave the stock unhurt.
For a detailed review of our (detailed!) analyses, please see the full not below, or reach out to the team. We will hold a conference call on Monday, April 15, at 10:30 ET / 15:30 GMT to review our work. Please click HERE to register for the conference call.
Link to the full note: Apple at $200? 3FQ and 2020 iPhone expectations are too high. Downgrade to Sell, TP $170.
Let us know any comments or questions.
Downgrades to Sell with a price target of $170.
[WARNING: All New Street Research links require a $40,000 year subscription.]
My take: Downgrade? Last we heard from Ferragu (Jan. 3) he was at $140. E-mail sent.