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Cantor Fitzgerald's Brian White: Apple Stock Is 'Pretty Amazing'

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Apple Inc. (NASDAQ: AAPL) will be declaring its Q3 earnings after the market closing on Tuesday.

Brian White, Cantor Fitzgerald analyst, was on CNBC to discuss Apple's current valuation, the impact of Apple Watch on results and whether the company can continue to grow in China.

Amazing Valuation

"It's amazing that this stock trades at 10 times ex-cash," White began. "And when we look at this, we're looking at GAAP earnings, we're not even - there are no pro forma earnings. Most of my mega tech companies, their pro forma earnings are 30 percent higher than GAAP. So that's really, if you did have an apples-to-apples comparison then maybe it's eight-nine times. So, it's pretty amazing."

Related Link: China 3G/4G Subscribers Grew 39% Last Month: Here's What It Means

The Watch And China Sales

White believes in this earnings report, "iPhone will be the focus and the Watch is icing on the cake."

On whether the sales growth of the iPhone in China will continue, White said, "Last quarter, 71 percent growth in China and its 29 percent of revenue. Is that growth rate sustainable? No, right? The smartphone market is China is actually not growing, it's kind of flattish this year, just slightly up or down a little bit.

"They have been gaining a lot of market share. So my take is this: you are not going to keep printing 70 percent growth, but I do think you will print high levels of growth."

Latest Ratings for AAPL

Jun 2017MizuhoDowngradesBuyNeutral
Jun 2017Pacific CrestDowngradesOverweightSector Weight
Apr 2017Morgan StanleyMaintainsOverweightOverweight

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Posted-In: Brian White Cantor FitzgeraldAnalyst Color CNBC Analyst Ratings Media


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