Apple Stock Ripe For Picking As iPhone 8 Cycle Looms

Apple Inc. AAPL reported strong Q1 results, with revenue and EPS ahead of expectations.

Investor focus will likely “shift almost entirely” to iPhone 8 and the stock seems “ripe for picking” ahead of the upcoming cycle, Baird’s William Power said in a report. He reiterated an Outperform rating on the company, while raising the price target from $133 to $145.

Q1 Results

Apple reported consolidated revenue of $78.4 billion and EPS of $3.36, marginally ahead of Baird’s estimates of $76.7 billion and $3.16 estimates, respectively. The beat was driven by higher iPhone sales and strong margins, analyst Power noted.

The company generated $23.7 billion in free cash flows and returned $15 billion to shareholders during the quarter.

Concerns Allayed

Apple guided to Q2 revenue of $51.5-$53.5 billion, slightly below consensus expectations, and included a currency headwind of $1.2 billion.

“FQ2 guidance was also largely in line with expectations, which we believe should allay near-term investor concerns,” Power wrote.

Moreover, concerns would be ease as investor focus shifts to the iPhone 8 growth opportunity, the analyst stated, while adding that Apple seemed “well positioned at the high end of the market” and that the company could generate strong iPhone 8 sales.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorLong IdeasPrice TargetReiterationAnalyst RatingsTrading IdeasBairdiPhoneiPhone 8William Power
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!