Merrill Lynch downgraded Apple’s stock rating to Hold from Buy citing more balanced risk-reward at current levels.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
However, Merrill Lynch analyst Wamsi Mohan lifted Apple’s (AAPL) price target to $470 (7.1% upside potential) from $420. Mohan believes that Apple shares are “already trading at the highest premium to SPX in 10 years and consumer staples multiples,” and he foresees multiple risks, including pressure on unit volumes and product gross margins.
On July 30, Apple reported better-than-expected earnings of $2.58, versus analysts’ estimates of $2.04 per share. Revenues of $59.7 billion also exceeded the Street estimate of $52.3 billion. The results were driven by “double-digit growth in both Products and Services and growth in each of our geographic segments,” according to Apple CEO Tim Cook.
The Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 24 Buys, 6 Holds, and 2 Sells. The average price target of $421.79 implies downside potential of 3.9% to current levels. (See AAPL stock analysis on TipRanks).
Related News:
Apple Up 6% On Blowout Quarter; Strong iPhone Demand
Apple Snaps Up Canadian Payment Startup Mobeewave For $100M – Report
LivePerson Spikes 15% On Raised Profit Guidance; Needham Almost Doubles PT