Baird Analyst On Apple: 'We Like The Stock Here On This Weakness'
Business Insider on Monday carried a report that claimed Apple Inc. (NASDAQ: AAPL) is testing its own wireless service. However, on Tuesday Apple refuted those rumors saying that it has no plans to be a mobile carrier.
Will Power, R.W. Baird analyst, was on CNBC to weigh in on this recent development and discuss the slump in the stock in the last few days.
"I think Apple does have real interest in disintermediating the carriers," Power said. "Whether it's the wireless carriers or the cable operators at some level. I mean look at iMessage, you look at some of the rumors around some of the iOS 9 capabilities, iCloud-based voicemail. But I think the idea of them actually being a real operator and being involved in customer service seems unlikely."
Related Link: Apple Breaches Two Key Technical Levels
A Combination Of Things
Power was also asked what he thinks is the reason behind Apple's stock falling so hard since its earnings last month. He replied, "I think it's a combination of things. Look, I mean from a technical standpoint...breaking the 200-day moving average is probably the latest catalyst. But I think there are some lingering questions on China and I guess the proof will be in the pudding there. I think we're still optimistic on the opportunity there."
"But as I talk to investors, I think the biggest concern is the calendar Q4, the December quarter comp. I mean, look the company had an enormous iPhone shipment quarter in that quarter a year ago. I think their questions and concerns as to whether they can really beat that. We think they can and as a result combined with other factors, we like the stock here on this weakness. So we would be buyers, yes," Power concluded.
Latest Ratings for AAPL
|Oct 2016||Goldman Sachs||Maintains||Buy|
|Oct 2016||Credit Suisse||Maintains||Outperform|
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