Deutsche Bank Reiterates on Apple as Product Cycles Kick Into Gear
In a report published Tuesday, Deutsche Bank analyst Chris Whitmore reiterated a Buy rating and $575.00 price target on Apple (NASDAQ: AAPL).
In the report, Deutsche Bank noted, “AAPL reported revs of $37.5B and EPS of $8.26 which beat expectation (vs. DB at $36.9B/$8.02; Street at $36.8B/$7.93). Apple beat on iPhone units (33.8M vs. DB at 32.5M) and iPads (14.1M vs. DB at 12M) and Mac results were light (4.6M vs. DB at 4.8M). iPhone mix and operating leverage translated into OM (26.8% vs. DB at 26.1%) and EPS upside. AAPL will defer ~$900M in the Dec Q related to SW deferrals which impacts cash EPS but not cash flow. Consequently, we trim EPS est's but at ~8x CY14 EV/FCF we believe AAPL represents an attractive value; maintain Buy and $575 PT.”
Apple closed on Monday at $529.88.
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