Jefferies Reiterates on Apple Following Solid CQ3 Results

In a report published Tuesday, Jefferies analyst Peter Misek reiterated a Buy rating and $600.00 price target on Apple AAPL. In the report, Jefferies noted, “As we expected, CQ3 results were better than St with iPhone shipments of 33.8M (Jef 34M, St 32M). We est that half of the accounting impact to CQ4 GM is one-time and the rest will ratchet back over time. We also est that ramping fingerprint sensor production, despite low yields, is hurting GM by ~75bp, which should abate in CQ1. We reiterate our Buy ahead of GM improvement (CY12 41.9%, CY13E 37.3%, CY14E 38.1%, CY15E 39.3%) and a strong iPhone 6 product cycle.” Apple closed on Monday at $529.88.