Reuters / Darrin Zammit Lupi
- While some analysts broke the price targets for Apple after the company's revenue warning, the majority is not bearish yet.
- Of the major Wall Street analysts who serve Apple, 23 have a buy rating, 23 hold ratings, and two sell ratings.
- While analysts have dropped by nearly 30 their price targets on Wednesday and Thursday, just three liters increased their ratings. In other words, the vast majority advise their clients to hold their own.
- "Despite the weakening of iPhone sales, we continue to believe that Apple will continue to shrink" The analyst base has been further expanded, "said one Analyst.
Apple was the biggest story on Wall Street Thursday as equities plunged 1
After the US markets closed on Wednesday, Apple informed investors that first-quarter fiscal revenue was lower than previous estimates, and mainly weak e iPhone demand in China warned. According to UBS, the iPhone accounts for a whopping 63% of Apple's total revenue (followed by services accounting for 14% of the company's total revenue), and the announcement shocked shareholders. Apple shares have fallen nearly 40% since peaking in October 2018.
While nearly 30 analysts lowered their price targets Wednesday and Thursday, only three of them – Jefferies, Macquarie and Loop Capital Markets – lowered their ratings. Nobody lowered their rating to "sell". Of the major Wall Street analysts hounded by Bloomberg, 23 carry a "buy", 23 a "hold" and two sell.
In other words, analysts advise investors to continue despite losses.
Take Mike Walkley, who is responsible for Canaccord Genuity. In a release on Wednesday he lowered estimates of iPhone sales and his price target for the stock from $ 225 to $ 190 – still a bullish outlook, forecasting a gain of 33% over current levels. He reaffirmed his "buy" rating.
"Despite declining iPhone sales, we continue to believe that Apple will continue to expand its installation base, believing that the company's ecosystem will be particularly valuable for its continued growth in services and others Higher margin products, "said Walkley.
"We maintain our belief that Apple can extend its leading market share in the premium smartphone market and the
iPhone-installed base (excluding upgraded iPhones) will exceed 700M in 2018."
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like sentiment. Angelo Zino, who serves Apple for CFRA Research on a Thursday morning listing, maintained his "buy" rating, but reduced his price target from $ 215 to $ 195.
"We are seeing a number of potential catalysts, including the release of a video streaming offering, 5G iPhones in CY 20 and more aggressive share buybacks," he wrote.
Zino told Business Insider that he would be more worried about Apple's warning if his guidance would be more broad-based output, but it was more "iPhone-centric" and included in China for the time being more or less.
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Meanwhile, Wedbush analyst Dan Ives called the episode the "darkest day of the iPhone Era, "however, reiterated its" outperform "rating, pushing its price target from $ 275 to $ 200.
Finally, Instinet analyst Jeffrey Kvaal said China is the main actor in the acro economic challenge Apple is facing.
"Apple pointed out that conditions in the rest of the world are a secondary factor," he wrote in an e-mail to Business Insider on Thursday.
"I believe it's true in China that both macro and product cycle issues are at stake, and the smartphone market in China was certainly soft for everyone, including Apple."  Kvaal repeated his "neutral" valuation of the stock, but lowered his price target from $ 185 to $ 175. When asked if he believed Apple's sales alert was a far-reaching sign of economic hardship, Kvaal did not quite respond.
"This is way above my pay grade – I'm just a technology analyst."  Read More: