Market Overview

This Japanese Think Tank Downgraded Apple To Outperform

Share:
This Japanese Think Tank Downgraded Apple To Outperform
Related AAPL
And The Oscar Goes To... Apple
Buffett's Bucket List Buys: The Oracle Making Unexpected Plays Late In The Game
Google Assistant Expands Past Pixel In Fight Vs. Apple's Siri, Amazon's Alexa (Investor's Business Daily)

Apple Inc. (NASDAQ: AAPL) is likely to witness modest growth of the iPhone in FY17-18, Daiwa Securities’ Yoko Yarnada said in a report. She downgraded the rating on the company from Buy to Outperform, with a price target of $117, following the run-up in shares.

Apple reported 14.6 percent year-over-year sales decline, with gross profit margin at 38 percent and EPS down 23 percent. iPhone channel inventory declined. Moreover, the iPad business generated revenue growth for the first time in 10 quarters, Yarnada noted.

Related Link: Now You Can See How Dominant Apple Is Every Second

Apple projected a 7.9 percent decline for the July-September period, with gross profit margin at 38.2 percent, EPS expected to decline by 14.5 percent.

Although the earnings forecast for Apple has been reduced, the firm's one-year price target is $117. The price risk factor is currently worse than expected in the smartphone market, Yarnada commented. There are new models being launched and significant changes in the presentation and development. She also cited the supply and demand environment, and changes in management policy.

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

Latest Ratings for AAPL

DateFirmActionFromTo
Jan 2017BarclaysDowngradesOverweightEqual-Weight
Jan 2017OTR GlobalDowngradesNegative
Jan 2017GuggenheimInitiates Coverage OnBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Daiwa Securities Yoko YarnadaAnalyst Color Long Ideas Downgrades Analyst Ratings Tech Trading Ideas Best of Benzinga

 

Related Articles (AAPL)

View Comments and Join the Discussion!