J.P. Morgan Reiterates Overweight Rating on Apple Ahead of Expected Shares Rally

In a report published Wednesday, J.P. Morgan analyst Mark Moskowitz reiterated an Overweight rating and $545.00 price target on Apple AAPL.

In the report, J.P. Morgan noted, “We expect shares of OW-rated Apple to exhibit a relief rally in the near term. The company's Sep-Q outlook requires another reset to consensus estimates ahead of new product launches this fall. The reason we think the stock reacts favorably, though, is Jun-Q iPhone units were better than expected and gross margin results and outlook were better than investors feared. The slowdown in China remains an issue, as sales to the region slowed dramatically in Jun-Q. As for the numbers, we expect consensus estimates to decline in coming days, but the magnitude will be less than in the prior two quarters. Next potential catalysts: whether lower-priced iPhone and iPad mini with Retina Display arrive ahead of the holiday season.”

Apple closed on Tuesday at $418.99.