Market Overview

Rosenblatt Defends Apple, Says Guidance Concerns Are 'Overblown'

Rosenblatt Defends Apple, Says Guidance Concerns Are 'Overblown'

Should investors be worried about Apple Inc. (NASDAQ: AAPL)'s fiscal second-quarter guidance next week?

Some analysts — like BTIG's Walter Piecyk, say yes — while others are unconcerned. 

The Analyst

Rosenblatt Securities' Jun Zhang maintained a Buy rating on Apple's stock with an unchanged $180 price target.

The Thesis

Apple could very well guide its fiscal second quarter (March) revenue below the current consensus estimate of $68 billion due to slowing iPhone sales, Zhang said in a research report. (See the analyst's track record here.) 

This is not a bearish signal, since the company should be able to recognize a portion of the iPhone X units which were produced in December and iPhone SE2 shipments, "which could begin as early as March," the analyst said. 

Apple could see upside from sales of the HomePod device, which becomes available Feb. 9, the analyst said, and continued strong demand for AirPods.

The launch of the new iPad Pro in June will be "supportive" to the June quarter results, Zhang said. Beyond sales metrics, Apple is believed to be in the process of cutting component costs, including panels, memory and glass casings, he said. 

Bottom line, it is "difficult" to imagine a scenario in which Apple delivers signs of positive momentum in its guidance, but any concern related to the March quarter is "overblown" ahead of multiple catalysts, according to Rosenblatt. 

Price Action

Shares of Apple were trading lower by around 0.16 percent Friday afternoon. 

Related Links:

BTIG Issues A Warning On Apple's Q2 Sales: The Unpredictability Of The ASP

Bernstein ID's Apple Suppliers That Track iPhone Revenue Trends

Photo courtesy of Apple. 

Latest Ratings for AAPL

Jan 2020MaintainsOutperform
Jan 2020MaintainsOutperform
Jan 2020MaintainsSell

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: iPhone iPhone sales Jun Zhang Rosenblatt SecuritiesAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga


Related Articles (AAPL)

View Comments and Join the Discussion!

Latest Ratings

TSCOPiper SandlerMaintains119.0
UNPBMO CapitalMaintains200.0
UNPArgus ResearchMaintains205.0
ISRGJP MorganMaintains665.0
EHTHRBC CapitalMaintains132.0
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.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
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