Gene Munster Advises Apple Investors to Hold Through Downward Revisions of June Quarter
In an interview with CNBC on Thursday, Gene Munster, managing director & senior research analyst at Piper Jaffray, offered details on why he has an Overweight rating on shares of Apple (NASDAQ: AAPL).
Munster believes there are not any positive catalysts to justify the Street's estimates of 10 percent growth for the June quarter. As a result, those June estimates will likely be revised down.
However, the Piper analyst advises Apple shareholders to hold through the downward revisions because, “at the end of the day it is not about the June quarter, it is about all these products coming in the back half [of 2014].”
Munster admits that holding through the downward revisions seems like a “backwards” approach. Munster believes investors are waiting on the sidelines for the June estimates to come down. When estimates are lowered to “de-risk” the June quarter, investors are going to “take a much bigger weight in the back half of the year,” Munster said.
Shares of Apple are down 0.3 percent to $529.75 in Thursday's trading.
Latest Ratings for AAPL
|Jul 2015||Nomura||Initiates Coverage on||Buy|
|Jul 2015||Cowen & Company||Downgrades||Outperform||Market Perform|
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