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Wall Street relieved by Apple’s clever superintendence for holiday quarter

Concerns that a iPhone 6s ascent cycle could post first-ever year over year sales declines were alleviated this week, when Apple indicated it expects iPhone sales will grow nonetheless again this holiday quarter. Analysts on Wall Street reacted to a news positively, advising investors to buy in.

Apple reported a record Sep quarter on Tuesday, earning $51.5 billion in income and $11.1 billion in net distinction on sales of 48 million iPhones and 5.7 million Macs. But many analysts were some-more focused on a company’s stream Dec quarter, that Apple guided to income between $75.5 billion and $77.5 billion.

Wall Street reacted definitely to a news, promulgation shares of AAPL adult in after-hours trade Tuesday, and stability into early morning trade on Wednesday.
Piper Jaffray, UBS, J.P. Morgan, FBR Co. Wells Fargo Securities all advise investors to buy in on AAPL.
Analysts also heaped regard on a iPhone builder in released to investors after a gain report, and AppleInsider offers a outline of their takes.

Piper Jaffray

To researcher Gene Munster, Apple’s superintendence was a “relief,” after some investors were fresh for a intensity decrease in iPhone sales. Specifically, Apple Chief Executive Tim Cook pronounced he entirely expects that iPhone sales will grow year over year in a stream Dec quarter.

Some on Wall Street were forecasting that sales could decrease between 5 and 8 percent year over year, Munster said. Investors have been endangered that a iPhone 6s cycle, with an outmost product coming mostly matching to a iPhone 6, would see consumer seductiveness wane.

“The set adult for a subsequent 12 months is certain as comfort in a 6s cycle will concede investors to boost their confidence around a iPhone 7, along with a flourishing multi-year tailwind from iPhone ascent cycles compressing and a intensity Apple Watch acceleration in late 2016,” he wrote.

Piper Jaffray has lifted a cost aim on AAPL batch to $179.


The pivotal reasons to possess Apple batch are record switchers from Android handsets to a iPhone, as good as light upgrades stability by a iPhone 6s cycle, researcher Steven Milunovich said.

He expects iPhone expansion in a Dec quarter, though investors sojourn endangered about March. Milunovich is displaying a 21 percent consecutive decrease in income in a Mar quarter, though pronounced that Apple could be helped by stability switchers and a Chinese New Year.

Long-term, he views Apple as a some-more annuity-like company, with a faith that ascent programs should make user ascent cycles both shorter and some-more consistent.

UBS has confirmed a “buy” rating on AAPL with a $150 cost target.

J.P. Morgan

Analyst Rod Hall’s exclusive iPhone ascent indication has been presaging 1.4 percent section expansion in a Dec entertain — a series that he remarkable is unchanging with Apple’s guidance. On Wednesday, he bumped that foresee adult to 2 percent.

Hall’s estimates call for iPhone units to grow some-more than 7 percent in calendar year 2016 — a series aloft than many of his contemporaries on Wall Street.

The researcher was also speedy by continued clever expansion in China, and Cook’s idea that a Apple iPhone Upgrade Program could enhance over a possess stores and into other countries.

UBS has confirmed an “overweight” rating for AAPL with a cost aim of $145.


Apple’s Sep entertain gain were “a vital step in branch a certain waves around a Apple story,” researcher Daniel Ives said.

He was quite tender that Apple is forecasting year-over-year expansion in a Dec quarter, notwithstanding what he called “Herculean” comparisons from a same duration a year ago.

While a supposed “iPhone 6 hangover” still lingers, Ives believes there is continued room for expansion with a iPhone. To him, a Sep entertain was a “pivotal rhythm point” for a company.

FBR has confirmed an “outperform” rating with a $175 cost aim for Apple.

Wells Fargo Securities

iPhone units could be improved than Wall Street expects in both a Dec and Mar quarters, researcher Maynard Um believes.

Apple now defers $5 to $10 reduction per iOS device, that should assistance margins, and Um believes Apple will use that additional precedence to expostulate sales of a entrance turn iPhone 5s, pulling section sales aloft over a subsequent dual quarters.

Um also believes Apple’s sum domain superintendence of between 39 and 40 percent for a Dec entertain could indeed infer conservative.

Wells Fargo has kept a “outperform” rating for Apple with a gratefulness operation of $125 to $135.

Cowen and Company

Unlike many of his peers, researcher Timothy Arcuri was not quite tender with Apple’s Sep entertain and Dec guidance.

He characterized iPhone units as “okay though not great,” and pronounced superintendence for a subsequent entertain was “down a center of a fairway.”

Cowen downgraded AAPL batch to “market perform” final quarter, and Arcuri has confirmed that following this week’s gain report. To him, Apple’s “beat and raise” plan has given approach to a “holding pattern” with simply “okay” estimates.

Cowen and Company has hold a cost aim of $135.

Article source: http://appleinsider.com/articles/15/10/28/wall-street-relieved-by-apples-strong-guidance-for-holiday-quarter

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