Excerpts from the notes I’ve seen. More as they come in.
Amit Daryanani, Evercore: Tariffs Delayed (For Now). The delay is an incremental positive for Apple as we have previously estimated tariffs could negatively impact AAPL’s EPS by 4-8% (under 10% scenario) and 10-20% (under 25% scenario). Net/Net: We maintain our OP rating and $238 target on AAPL as we see a confluence of a) services acceleration, b) gross margin upside, c) capital allocation and d) reasonable Sept-qtr bogey as enablers for stock upside. Outperform. $238.
Daniel Ives, Wedbush: Tariff Overhang Removed for Apple in the Near-Term; Good News. For Apple, which has become the poster child of this US/China UFC trade battle, this is a major shot in the arm for the bulls as importantly Cook & Co. will be facing no tariff noise/costs when the trifecta of iPhones launch in the September time-frame. Since President Trump announced in early August that this 10% tariff will be placed on the $300 billion of Chinese goods, all investor eyes have been on Apple and how the company will handle this shot across the bow. Cook was either going to have to pass this incremental cost along to US consumers and hurt overall iPhone unit demand in the midst of a crucial upgrade cycle, or absorb (which we believe was the likely option) the 10% and take a hit to the bottom line; representing a huge fork in the road scenario of Apple. Outperform. $245
My take: Slim pickings so far. To quote friend-of-the-blog Jeff F,
Anyone who didn’t see this coming isn’t paying attention.