Daiwa raises Apple price target to $223

Analyst Louis Miscioscia lowers 2020 EPS estimate, raises revenue, assumes S&P 500 average doesn’t change over the next 12 months.

StreetInsider has the note:

The analyst comments “We move FY20 EPS to $13.00, from $13.22, but raise revenue to $273bn, from $269bn, and TP to $223, or ~17x our EPS est., and keep our 1/Buy rating. Even if we have to reduce our estimate $0.80 to $12.20, the PE would be only ~18x. We suggest buying here. Granted, it could get worse than our expectation, and Trump could suggest move to 25% tariffs, which could be a much larger EPS hit. It is our expectation that a US-China compromise will be reached. Our TP and rating assume that the S&P remains unchanged over the next 12 months.”

Maintains Buy rating, raises price target to $223 from $212. 

My take: That last assumption is a doozy.

One Comment

  1. Fred Stein said:
    Here’s what we learned from Mr. M:
    1) Lowered EPS target
    2) Raised PT
    3) Highlighted risk factors.

    Doesn’t higher risk mean higher risk-adjusted discount premium in DCF models? Can someone explain?

    August 8, 2019

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