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.