Apple investor fears about China & iPhone 6s are 'overblown,' FBR says
As shares of Apple continue to hover just above $100, investment firm FBR stood by the iPhone maker on Monday, saying that the overly negative sentiment on Wall Street is not justified.
Analyst Daniel H. Ives acknowledged that while Apple stock is in a "turbulent" period, he believes investors should buy in while shares are affordably priced. To him, fears over growth slowing at Apple are "overblown."
"We believe Bearish sentiment has swung too far now, as (Apple CEO Tim) Cook has a relatively low iPhone unit bar for the dreaded March and June quarters," Ives wrote.
Admitting that Apple stock has seen a "miserable, dark period over the last few months," Ives believes investors are underestimating the company's potential heading into 2016. In particular, he anticipates an "iPhone 7" upgrade in September to reignite growth, attracting many users who have not yet upgraded to a larger iPhone screen size.
In the interim, he believes the iPhone 6s has seen "less than stellar" demand, but is still in a position to exceed expectations in the coming quarters.
"With our initial read on the December quarter/holiday season coming in relatively strong, we believe Apple should be able to hit the Street's iPhone forecasts for (the first quarter of calendar 2016) and that March/June estimates are now achievable with supply chain data points."
Shares of Apple fell Monday, the first day of trading in 2016, amid significant drops across the U.S. markets. The losses were attributed to reports out of China suggesting its economy is slowing down.
China has proven to be an especially pivotal part of Apple's continuing growth strategy, as the country will soon become the iPhone maker's largest.
Ives believes that China will remain the "main fuel tank" for Apple as it pushes into 2016. He sees the company selling more than 220 million iPhone units this year, which he called a "commendable achievement for an 'S' product cycle."
Though FBR is standing by Apple, the firm did cut its estimates last month amid fears of the iPhone 6s not driving growth. The firm has nevertheless maintained an "outperform" rating for shares of AAPL, with a price target of $150.
Analyst Daniel H. Ives acknowledged that while Apple stock is in a "turbulent" period, he believes investors should buy in while shares are affordably priced. To him, fears over growth slowing at Apple are "overblown."
"We believe Bearish sentiment has swung too far now, as (Apple CEO Tim) Cook has a relatively low iPhone unit bar for the dreaded March and June quarters," Ives wrote.
Admitting that Apple stock has seen a "miserable, dark period over the last few months," Ives believes investors are underestimating the company's potential heading into 2016. In particular, he anticipates an "iPhone 7" upgrade in September to reignite growth, attracting many users who have not yet upgraded to a larger iPhone screen size.
In the interim, he believes the iPhone 6s has seen "less than stellar" demand, but is still in a position to exceed expectations in the coming quarters.
"With our initial read on the December quarter/holiday season coming in relatively strong, we believe Apple should be able to hit the Street's iPhone forecasts for (the first quarter of calendar 2016) and that March/June estimates are now achievable with supply chain data points."
Shares of Apple fell Monday, the first day of trading in 2016, amid significant drops across the U.S. markets. The losses were attributed to reports out of China suggesting its economy is slowing down.
China has proven to be an especially pivotal part of Apple's continuing growth strategy, as the country will soon become the iPhone maker's largest.
Ives believes that China will remain the "main fuel tank" for Apple as it pushes into 2016. He sees the company selling more than 220 million iPhone units this year, which he called a "commendable achievement for an 'S' product cycle."
Though FBR is standing by Apple, the firm did cut its estimates last month amid fears of the iPhone 6s not driving growth. The firm has nevertheless maintained an "outperform" rating for shares of AAPL, with a price target of $150.
Comments
Yeesh!! Analysts !@#!!%&**!!
Dr. Scott
I did notice that AAPL is down less than a quarter of a percent today while most other stocks are down 2-5% or more. I don't know if that just means AAPL was way over sold and now these other stocks that have had huge run ups are taking the hit. Though AAPL was down 2% when the market first opened and has climbed it's way up all day.
What 'lies' would those be?
I would say Ives analysis should be taken with a pinch of salt, given what has been happening in China today. Worse than expected manufacturing data, the share market tanked 7% shortly after opening, trading was suspended for the day and the Chinese government is wading into foreign banks to prevent them from doing currency transactions that are abetting a flight of capital.
It would not surprise me if things are actually much worse in China than have been portrayed. Hang on to your hats.
Sheer baloney. Apple has zero to gain by coming out with a new iPhone before it's normal mid-to-late September launch. Just a reason to hack at AAPL when these "anticipations" don't materialize.
YOUR shit has been going on far too long, and I only remember noticing you a few days ago....
A 7% fall in China's stock market in a fraction of a day is nothing? You don't think that Investors in China have any clue as to the real state of their economy? You don't think that what is looking to be a far worse slowdown in China than has hitherto been reported, is likely to have any negative repercussions? You don't think the prospects for iPhone sales in a market touted as becoming Apples largest may have changed or that investors shouldn't give the matter some thought?
Android switchers? Forget it, they are as dry as a bone in the desert... They don't buy anything, they don't buy software, they don't play games except candy, they don't upgrade, they are absolutely not interested in the Apple ecosystem...