Market Overview

Canaccord Lowers Apple's Target To $120, Anticipates Recovering Sales With iPhone 7 Launch

Share:
Canaccord Lowers Apple's Target To $120, Anticipates Recovering Sales With iPhone 7 Launch

According to the most recent Canaccord surveys, Apple Inc. (NASDAQ: AAPL) iPhone customers are holding off on buying new devices until the iPhone 7 comes out. The resulting slump in iPhone average sales price (ASP) is the main reason that Canaccord analyst Michael Walkley has dropped his price target for Apple from $130 to $120.

However, the firm remains bullish on the stock.

“Consistent with late stage cycles of iPhone ahead of a new number launch, we anticipate weaker iPhone ASPs during the June and September quarters,” Walkley explains.

While prices may be on the decline, the firm’s surveys indicate overall sales numbers have remained steady.

Related Link: iPhone 8 Super Cycle Will Drive Apple Shares Up 50%

In the long-term, Walkley believes the iPhone 6 and iPhone 6s has allowed Apple to expand its massive installed base to over 500 million by the end of 2015, which is good news for the company and its shareholders.

“This impressive installed base should drive strong future iPhone replacement sales and earnings, as well as cash flow generation to fund strong long-term capital returns programs of $250B through F2018,” he notes.

Canaccord is anticipating the iPhone 8, which is on tap to be the company’s 10-year anniversary device in 2017, will likely drive a stronger replacement cycle than the iPhone 7 model will.

Apple’s stock has slumped 8.8 percent so far in 2016, but Canaccord maintains its Buy rating.

Disclosure: the author holds no position in the stocks mentioned.

Latest Ratings for AAPL

DateFirmActionFromTo
Jan 2021BarclaysMaintainsEqual-Weight
Jan 2021Canaccord GenuityMaintainsBuy
Jan 2021Credit SuisseMaintainsNeutral

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

 

Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: Canaccord iPhoneAnalyst Color Price Target Reiteration Top Stories Analyst Ratings Tech Best of Benzinga

Latest Ratings

StockFirmActionPT
MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
NVDASusquehannaMaintains625.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com