Market Overview

UPDATE: Oppenheimer Reduces Rating on Apple, Down 7 Percent

Related AAPL
Can You Count On Children's Media In The Digital Age?
JP Morgan Modeling For Increased Q4 iPhone Production Plan
IMacs resolve to run 4K, 5K (Investor's Business Daily)

In a report published Tuesday, Oppenheimer analysts downgrades Apple (NASDAQ: AAPL) from Outperform to Perform, removing their previous price target of $560.

Apple released their earning report after Monday's close of sales/EPS of $57.6B/$14.50 beating the Street estimate. However, their guidance for the next quarter was not up to par with market expectations with China Mobile (NYSE: CHL) in their back pocket. The report defends their downgrade, "iPhone missed targets including shipments (51.0M vs. Street 54.6M) and revs ($32.5B vs. $32.9B) with the Street likely overestimating the 5C ramp. Disappointing North America trends. Compressing industry life-cycles/tough competition."

Oppenheimer concluded, "We see Apple now entering a lull period (like the one seen in 1H-CY13) until its next new product cycle comes into view. Near-term expansion opportunities (current products) are mostly in emerging markets, but with competition tough (especially in China) and margins/ASPs at risk of moderation, we believe investors would be cautious."

AAPL closed Monday at $550.50 and is trading down 7% at around the $511.94 level.

Latest Ratings for AAPL

Oct 2015Morgan StanleyMaintainsOverweight
Oct 2015Drexel HamiltonInitiates Coverage onBuy
Sep 2015Sterne Agee CRTInitiates Coverage onBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: OppenheimerAnalyst Color Downgrades Analyst Ratings


Related Articles (AAPL + CHL)

Get Benzinga's Newsletters