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BMO Drops Apple Target from $118 to $116

There seems to be a trend on Wall Street. Everyone is excited about Apple, but just not excited about Apple right now. Barron’s had BMO Capital Markets analyst Tim Long issuing a note on Thursday reiterating his outperform rating on Apple shares while cutting his expectations and his price target. The target goes from $118 to $116. ‘Two-Dollar-Tim’ we’ll call him now. As for his lowered expectations, gross margins have got him down in the near-term. He and his now estimate corporate gross margin of 37.5% versus consensus 38.3%, according to his note. He went on to write:

We believe the dilution from the iPhone SE was more pronounced in June, and September will be more driven by initial volume and gross margin on the iPhone 7.

Of course, we’ll out what last quarter held next Tuesday. That’s when Apple announces earnings and hold its Q&A call with financial analysts. Corn dogs to be served after — no reason, I just like corn dogs.

Source : Barrons

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