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RBC cuts March estimates, sees Apple's momentum returning in the second half of 2013

post #1 of 18
Thread Starter 
RBC Capital Markets on Friday cut its estimates for Apple's just-concluded March quarter, citing apparent weakened demand, but the firm also believes that the iPhone maker could pick up steam in the second half of the year.

RBC


Analyst Amit Daryanani of RBC cut is price target for AAPL stock from $600 to $550, while reducing his projected sales for the March quarter. He has modeled for Apple to sell 35 million iPhones and 18.3 million iPads in the three-month span.

His new March projections of $41.2 billion in revenues and $9.59 earnings per share are below Wall Street expectations of $42.7 billion in revenues and $10.08 earnings per share.

Daryanani has also cut RBC's estimates for Apple's in-progress June quarter, when he believes the company will earn $37.3 billion in revenues and $8.72 earnings per share. Those numbers are also below market consensus, as the analyst believes Apple will be affected by product transitions during the quarter.

He sees iPhone units dropping to 28.6 million in the June quarter, while iPad sales are forecast to be around 19 million.

But beyond what he called the "June trough," Daryanani believes Apple could see some of its momentum return in the second half of calendar 2013. He sees a number of catalysts on the horizon, including anticipated debuts of iOS 7 along with a next-generation "iPhone 5S" and a more affordable new iPhone model.

The same analyst reported last month that he believes Apple will launch "multiple new phones" in the June-July timeframe. Specifically, he expects that a new low-end iPhone with a plastic casing could be Apple's way of addressing the entry-level smartphone market, where the company currently does not compete.

Beyond the iPhone, other potential boosts for Apple later this year include carrier expansion to partners like China Mobile, which is the largest wireless provider in the world, as well as the possibility of new products, like a full-fledged Apple television set or a smart wrist watch accessory.

While RBC's price target calls for AAPL shares to grow 29 percent to $550, the firm does also offer "upside" and "downside" scenarios, in which shares could swing as high as $700 or as low as $350. Despite the lower price target, RBC has maintained its "overweight" rating on Apple.
post #2 of 18

yawn.  Another anal-list allowing short-term supply issues to determine target price.  All based on pure speculation.

post #3 of 18
Another stupid monkey revising his PT in response to the share price. Btw, Apple does have a cheaper phone: the iphone 4 and 4S. Btw, apple does have different screen size: the iphone 4 and iphone5
post #4 of 18

Double yawn.

post #5 of 18

What the **** would a bank know about Apple's momentum?

post #6 of 18

RBS said that Apple was going lower back in 2009 when it hit $77.
 

45 2a3 300b 211 845 833
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45 2a3 300b 211 845 833
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post #7 of 18
Hahahaha! Oh, these threads slay me.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #8 of 18
I don't get the math: 434: up by 29% is 559, up 60% is 711, down 17% is 360
"Fibonacci: As easy as 1, 1, 2, 3..."
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"Fibonacci: As easy as 1, 1, 2, 3..."
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post #9 of 18
Quote:
Originally Posted by PhilBoogie View Post

I don't get the math: 434: up by 29% is 559, up 60% is 711, down 17% is 360

Beats me. Do you have to insert them into a machine on a mysterious island every 108 minutes?

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #10 of 18
Quote:
Originally Posted by PhilBoogie View Post

I don't get the math: 434: up by 29% is 559, up 60% is 711, down 17% is 360

Reminds me of my dad teasing me when I was about 6 or 7 and trying to understand fractions. He'd point out 6 was half as much again as 4, then add, 'but then 4 is two thirds of 6' ... I remember my brain hurt.
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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post #11 of 18
edit: Read backwards the first time but not after it was submitted. Weird.
Edited by SolipsismX - 4/12/13 at 12:13pm

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #12 of 18
Quote:
Originally Posted by tobeornottobe View Post

Another stupid monkey revising his PT in response to the share price. Btw, Apple does have a cheaper phone: the iphone 4 and 4S. Btw, apple does have different screen size: the iphone 4 and iphone5

And it has a really BIG screen one: the LTE iPad mini..... and a SUPER-BIG screen one, the LTE iPad4 lol....

 

Both, btw, cheaper to own and operate since they don't carry those unused voice contract penalties....

post #13 of 18
Quote:
Originally Posted by sog35 View Post

All based on pure speculation.

 

It's called investing. [pushes chips on to double zero] Come on, baby needs a new iPad!

post #14 of 18
Quote:
Originally Posted by sog35 View Post

yawn.  Another anal-list allowing short-term supply issues to determine target price.  All based on pure speculation.

the 4S had supply issues, for months

 

the iphone 5 is being discounted all the time

post #15 of 18
Quote:
Originally Posted by digitalclips View Post

Quote:
Originally Posted by PhilBoogie View Post

I don't get the math: 434: up by 29% is 559, up 60% is 711, down 17% is 360

Reminds me of my dad teasing me when I was about 6 or 7 and trying to understand fractions. He'd point out 6 was half as much again as 4, then add, 'but then 4 is two thirds of 6' ... I remember my brain hurt.

A real problem when you're trying to calculate the percentage change in the value of one currency against other: the percentage appreciation from one currency's pov is not the same as the percentage depreciation from the other currency's pov.

 

Some call it the "divisor problem."

post #16 of 18

"sees Apple's momentum returning in the second half of 2013"

 

I think someone doesn't understand the concept of "momentum."

post #17 of 18

RBC? You mean the Canadian bank that suddenly decided to replace all employees of one of their branch with cheap foreign workers while making billions of profits? And to add insult to the injury they wanted the soon jobless employees to train their replacements? Yeah sure I trust them... 1oyvey.gif

 

http://www.ctvnews.ca/canada/rbc-apologizes-to-employees-affected-by-outsourcing-decision-1.1233754

post #18 of 18
AAPL's decline has been really painful.
Hopefully, there's some good news when the results are announced.
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