Apple Watch Buzz 'Not Great,' Bernstein Warns

In a report published Tuesday, Bernstein analyst Toni Sacconaghi maintained an Outperform rating and $142 price target on

. The analyst believes that the Internet buzz about the uptake of Apple Watch is "not great." "We analyzed Internet search data & found it to be highly correlated, leading indicator of product success across many consumer electronics products, including Apple's," Sacconaghi mentioned regarding the "buzz" surrounding the sales of Apple Watch in FQ3. According to the Bernstein report, the data suggests that the Apple Watch is on track to reach only about a third of the sales of the iPhone and about a quarter of the sales of iPad. This suggests the sale of only about 750,000 units in FQ3, with about another 1.3 million units being sold in FQ4. "While we remain cautious on Watch demand in the near-term, we see the Watch as potentially accretive to company GMs and able to deliver significant volume going forward as a health monitoring device," Sacconaghi added.