Apple's Stock Is Stuck, Says Macquarie Analyst

• Apple, Inc. AAPL stock has risen 11.3 percent over the past one year.
• Macquarie’s Ben Schachter has maintained an Outperform rating on the company, while lowering the price target from $140 to $133.
• Schachter believes that there were “more disappointments than positive surprises” at Apple’s product launch event.

In the near term, Schachter expects the stock to “have trouble getting past the tough iPhone comp issue,” although “the app ecosystem, smartphone dominance, & innovative new devices in the pipeline should be compelling” in the longer term.

The positive takeaways from Apple’s event included the company’s new direct leasing program, 3D touch functionality and Live Photos in the new iPhone, as well as the Apple TV specific app store, integration of Siri with the TC, touch and motion reactive remote and casual gaming potential.

However, the higher than anticipated price point for the iPad Pro is likely to increase overall iPad ASP while limiting volume. The new iPad is focused on enterprise and creative content and comes with a keyboard accessory and Apple Pencil.

On the negative side, while there have been robust improvements to the iPhone, they are unlikely to be as impactful as the increase in size last year. Also, while the Apple TV seems interesting, there is nothing revolutionary about it, according to Schachter. The initial gaming titles are also “relatively weak.”

The company did not provide any China-specific or Apple Pay updates, and there was nothing new on VR/AR or Mac.