Loop Capital cuts its Apple price target to $225

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Analyst Ananda Baruah reports that Apple is meeting with Foxconn and warns that the company could issue a guidance update as soon as today.


From a note to clients Monday snagged by TheFly:

Loop Capital analyst Ananda Baruah lowered his price target on Apple to $225 and also lowered his Q4 iPhone shipment target to 75M from 80M and 2019 target to 204M from 227M.

The analyst cites the latest guidance revisions from Lumentum (LITE) along with reports that Apple’s iPhone assembler Foxconn is lowering its output expectations.

Baruah keeps his Buy rating on Apple, saying that it remains an “attractive long-term investment” given its median multiple of 15-times earnings, but also warns that the company could announce its guidance update as soon as today after meeting with Foxconn, which may prompt him to make additional estimate reductions.

Maintains Buy rating, lowers price target to $225 from $259.

My take: A guidance update would be huge news!. Meanwhile, Lumentum, again?

BTW, Baruah was the guy who raised his price target on Sept. 11, one day before the iPhone XS Max launch. He cited the “the run-up in the stock-price” and the likelihood that Wall Street was underestimating demand for the “LCD model” (i.e. the iPhone XR).

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