Market Overview

Drexel's Brian White Says Apple Shares Will Bottom This Summer; Reiterates Buy

Drexel's Brian White Says Apple Shares Will Bottom This Summer; Reiterates Buy

Apple Inc. (NASDAQ: AAPL) reported robust 3QFY16 results on July 26, while issuing its 4QFY16 guidance above expectations.

Drexel Hamilton’s Brian J. White maintains a Buy rating on the company, with a price target of $185.

Stock Will Bottom

“We believe Apple's better than expected performance and constructive conference call will begin to shift sentiment away from the "gloom and doom" mentality that has engulfed the Apple story over the past several months,” White mentioned.

The analyst expects the stock to bottom during this summer, with the estimates indicating that the sales and profit cycle bottomed in 3QFY16.

3QFY16 Results

For 3Q, Apple reported its sales at $42.36 billion, ahead of the estimate and the consensus, with the pro forma EPS at $1.42 also beating expectations.

Related Link: History Says Odds Are Apple Shares Will Be Higher In 30 Days Than They Will Be Today

“Although we had expected Apple's iPhone unit cycle to reach a bottom in 3Q:FY16, stronger than expected iPhone demand driven by the new iPhone SE resulted in the trough occurring in 2Q:FY16,” White noted.

Following the 37 percent iPhone unit growth in FY15, White expects iPhone units to declined 9 percent year on year in FY16, up from the previous estimate of an 11 percent decline.

The analyst continues to expect iPhone units to return to growth in 2QFY17, following the launch of the iPhone 7 in September.

The company reported iPhone unit sales of 40.4 million for 3QFY16, ahead of the estimates, while iPad units of 9.95 million and also beat the estimate.

The revenue and EPS estimates for 4QFY16 and the FY17 EPS estimates have been raised.

At time of writing, Apple Inc. was up 7.35 percent at $103.79, shortly after Wednesday's opening bell.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for AAPL

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: Analyst Color Earnings Long Ideas Guidance Reiteration Analyst Ratings Movers Tech Best of Benzinga

Latest Ratings

URIVertical ResearchInitiates Coverage On310.0
PCARVertical ResearchInitiates Coverage On95.0
DEVertical ResearchInitiates Coverage On345.0
CNHIVertical ResearchInitiates Coverage On16.0
AGCOVertical ResearchInitiates Coverage On119.0
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