If a year ago Wall Street was hitting Apple hard for the uncertain future that the company seemed to have in terms of sales, today the situation is completely different, and analysts are of the opinion that Apple shares should be bought, despite poor financial results announced yesterday.
Last night Apple announced the second fiscal quarter with weaker sales and earnings than in the corresponding fiscal quarter of the previous year, but analysts on Wall Street believe that the next fiscal quarters will only come with increases in revenues, sales and profit for Apple, so he recommends buying shares.
In the trading session after the close of the stock market, the price of Apple shares increased by up to 8 dollars above the closing price, and this is because analysts believe that the financial results announced yesterday, although weak, are not as weak as- they imagined, so Apple is still doing something good to solve its problems.
Moreover, some analysts estimate that the price of Apple shares could increase to $150 in the period before the conference for the presentation of the iPhone 7, or even after that, but we are talking about almost doubling the current value, something that has little chance of to take place in the conditions in which iPhone sales keep falling.
We expect shares of Apple to be upward trending in the near term. iPhone unit trends and consolidated gross margin were better than feared. The model is not out of the woods with respect to structural questions related to global smartphone saturation and elongating replacement cycles, but overall results and outlook should be enough to get consensus estimates, and thereby, the stock moving higher. We had been preparing for one more downward reset. Our PT remains at $115.
The situation itself is unexpectedly good for Apple, those from Cupertino seem to have the support of analysts on Wall Street despite the fact that the financial results are not great, but it remains to be seen how long it will take until the "wolves" will turn against him Tim Cook and his team of vice presidents.
