“We believe Apple is best positioned to recover to its prior long-term revenue and earnings trajectory.” — Analyst Katy Huberty
From a note to clients that landed on my desktop Friday:
Reducing estimates further to align with Morgan Stanley’s weaker global GDP forecast. We assume iPhone replacement cycle mirrors PCs in the financial crisis alongside lower product ASPs. We continue to favor Apple’s loyal customer base, strong balance sheet and upcoming 5G catalyst….
Maintains Buy rating, cuts price target to $298 from $328.
My take: This was Huberty’s third target change this year—to $368 (1/16) to $328 3/16) to $298 (4/3)—but she manages not to seem any less bullish on Apple.
From the note:
Click to enlarge.