What Analysts Are Saying After the Apple iPhone Debut

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Credit Suisse took this opportunity to reiterate its Outperform rating and $150 price target. The firm said in its report:

Apple released updates to its iPhone portfolio, Apple Watch offering, new wireless headphones (called AirPods) and new Beats headphones. The releases point to continued innovation at Apple in hardware, software, and services and are welcome additions to its wide portfolio of compute products. The new announcements today further add to Apple’s strong product portfolio and provide a solid bedrock for Apple’s growing Services business.

Wells Fargo downgraded Apple to a Market Perform rating from Outperform and adjusted its valuation range to $105 to $120, from $115 to $125 previously. The investment bank sees limited upside potential beyond the high end of its revised range given investor expectations for the raise, narrow visibility into March and June quarters (dependent on December sell-through) and potential for pull-in of demand from future quarters due to more aggressive country launch plans. While iPhone 8 has the potential to be a big cycle, Wells Fargo believes there is limited visibility given the off cycle and, if history is an indicator, the bank believes it too early to be investable.

Merrill Lynch maintained a Buy rating with a $120 price objective and detailed why in its report:

We rate Apple a Buy on potential upside from 1) Continued long-term opportunity in China, 2) potential share gains from the release of a lower-end iPhones, 3) strength in the upcoming iPhone 7 cycle, 4) optionality in cash balance. Risks are: 1) Upcoming deceleration in iPhones after a strong product cycle 2) development of new revenue sources like Apple Pay, Apple Watch, home/health kit, etc., that will take time to mature.

A fair number of other analysts weighed in on Apple as well:

  • S&P Global maintained a Strong Buy rating.
  • BGC Partners maintained its Sell rating with an $85 price target.
  • William Blair reiterated an Outperform rating.
  • Pacific Crest reiterated an Outperform rating with a $121 price target.
  • Macquarie reiterated an Outperform rating with a $115 price target.
  • Deutsche Bank reiterated a Hold rating with a $105 price target.
  • Stifel reiterated a Buy rating with a $120 price target.
  • Nomura reiterated a Buy rating with a $120 price target.
  • Morgan Stanley reiterated an Overweight rating with a $123 price target.
  • JPMorgan reiterated an Overweight rating.
  • Goldman Sachs reiterated a Buy rating with a $124 price target.
  • Citigroup reiterated a Buy rating with a $120 price target.
  • Sanford Bernstein reiterated an Outperform rating with a $125 price target.

Shares of Apple closed down 2.3% at $103.13 on Friday, with a consensus analyst price target of $123.66 and a 52-week trading range of $89.47 to $123.82.

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