From a note to clients by analyst Samik Chatterjee that landed on my desktop Monday:
While the 2019 product cycle has proven more resilient and easily crossed the low bar of investor expectations heading into the September launch, expectations are clearly no longer the same and the limited hardware spec changes in the backdrop of a challenging macro does limit the ability to drive volume upside to current expectations in the near-term.
As we look for the next sizeable driver of volume upside to potentially come from the iPhone SE2 launch in early 2020, followed by the launch of 5G enabled phones in September 2020, we are not recommending investors add incremental positions heading into the print, but rather use any share price weakness following the print to double down on the multi-year earnings trajectory.
Maintains Overweight rating and raises price target to $275 from $265.
My take: I’ve never seen Goldman Sachs ($165) and J.P. Morgan ($275) so far apart on the same stock on the same day. Apple’s share price, meanwhile, closed at an all-time high $246.58 Friday and was green Monday in pre-market trading.