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Nomura Expects Apple's Rising Subscriber Base To 'Ultimately Restore Volume Growth'

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Nomura's Jeffrey Kvaal maintained a Buy rating on Apple Inc. (NASDAQ: AAPL), with a price target of $135.

Following Nomura's Asia Tour, Kvaal said, "We found both the long-term and near-term implications for Apple to be positive overall."

Despite lower-than-expected iPhone 6s sales, the company's competitive positioning remains robust, the analyst mentioned.

Related Link: March Is Apple's Low Point: Why Rob Cihra Is Buying

Kvaal also pointed out, "Our thesis remains that Apple's rising subscriber base will ultimately restore volume growth."

Vendors believe that there is a lot of room for improvement in terms of features, such as wireless charging, thickness, screen resolution and foldability.

In addition, Kvaal expressed optimism regarding the long-term potential of Apple Watch, as the company integrates additional functions, although this inflection point is unlikely during 1H16.

"Most component vendors consider February the slowest month for iPhone orders, in part given the Lunar New Year," the Nomura report stated, adding that excess channel inventory had "mostly or wholly" been burned off and that improving trends were likely in Q2 and beyond.

Latest Ratings for AAPL

DateFirmActionFromTo
Jul 2020Morgan StanleyMaintainsOverweight
Jul 2020WedbushMaintainsOutperform
Jul 2020CascendMaintainsBuy

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