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What's In Store For Apple In 2016

What's In Store For Apple In 2016
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On Tuesday, investment firm Cowen & Co downgraded its view on Apple Inc. (NASDAQ: AAPL), trimming its 12-month price target from $135 to $130. The downgrade came after several other firms similarly lowered their price targets over the past week, citing lackluster iPhone sales.

The deteriorating sentiment has brought Apple shares down more than 5 percent over the past week, and the firm's stock is about to post its worst month in almost two years come the end of December.

So What Happened?

Apple has been a market darling for years by posting impressive growth and delivering shareholder value. The company itself has a great deal of cash in the bank and a strong balance sheet, making it an appealing buy for value investors.

Related Link: Cowen Is Still 'Holding Off' On Apple

However, many analysts are expecting that the company's fiscal year, which ends in September, will be the first in which iPhone sales fell from the previous year. That has caused some to speculate that Apple shares could see a marked drop, possibly to as low as $90, in the coming year.

Any Bright Spots?

Despite the gloom and doom surrounding iPhone sales, many are still optimistic about Apple's prospects in the coming year. The firm has consistently delivered earnings per share growth and expanded its profit margins from year to year, supporters say these metrics will outweigh the weaknesses the firm is experiencing.

Apple is also planning to roll out some big things in the coming year, including a TV subscription service that many believe could rival the likes of Netflix, Inc. (NASDAQ: NFXL) and, Inc. (NASDAQ: AMZN).

Latest Ratings for AAPL

May 2018Morgan StanleyMaintainsOverweightOverweight
May 2018BMO CapitalMaintainsMarket PerformMarket Perform
May 2018Canaccord GenuityMaintainsBuyBuy

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Posted-In: CowenAnalyst Color Analyst Ratings Tech Trading Ideas Best of Benzinga


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