Stock Market News

Apple: Bernstein’s Analysts ‘Cautious’ on iPhone 14 Cycle, Valuation

2022.10.07 08:55



© Reuters Apple (AAPL): Bernstein’s Sacconaghi ‘Cautious’ on iPhone 14 Cycle, Valuation

By Senad Karaahmetovic 

Bernstein analysts, once again, reiterated their cautious stance on Apple (NASDAQ:) shares, which they rate Neutral with a $170 per share price target.

The analysts are worried that Apple may have been a COVID beneficiary, given that their operating profit is higher by over 60% than before the pandemic. Moreover, the analysts are concerned about weak iPhone 14 unit sales, despite the belief that the average selling price (ASPs) could be up about 5% YoY.

“Elongating replacement cycles following two strong years of sales and an increasingly pressured consumer, especially in China, could cause the unit sales to come in weaker than expected,” the analysts wrote in a client note.

Bernstein forecasts that the Services growth will be in the mid-teens in the near-to-medium term.

“Apple has done an excellent job in driving ARPU growth in Services due to higher attach rates and new Services. Advertising and App Store account for 60% of Services revenues and 80% of Services operating profits today,” the analysts added.

Finally, analysts are also concerned about Apple’s valuation as shares trade “at the high end of its historical relative valuation range.”

“Notably, Apple is the only stock among the 10 largest tech names to outperform this year, despite results being largely in line with expectations,” they concluded.

Elsewhere, Morgan Stanley analysts noted that Phone 14 Pro Max & Pro lead times remain elevated, which marks “the 1st & 3rd strongest of all models launched in the last 6 yrs.”

“Lead times in key int’l markets are even longer than in the US, despite Y/Y price increases, a positive surprise amid cont’d demand concerns,” the analysts wrote in a research note.



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 97,474.12 1.62%
ethereum
Ethereum (ETH) $ 2,750.58 1.32%
xrp
XRP (XRP) $ 2.50 1.72%
tether
Tether (USDT) $ 1.00 0.05%
solana
Solana (SOL) $ 204.48 0.73%
bnb
BNB (BNB) $ 572.60 0.70%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.26413 0.53%
cardano
Cardano (ADA) $ 0.745707 0.14%
staked-ether
Lido Staked Ether (STETH) $ 2,745.12 1.14%
tron
TRON (TRX) $ 0.224075 1.91%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,319.07 1.66%
chainlink
Chainlink (LINK) $ 19.51 2.02%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,269.40 1.34%
sui
Sui (SUI) $ 3.56 6.33%
avalanche-2
Avalanche (AVAX) $ 26.56 1.76%
stellar
Stellar (XLM) $ 0.339248 1.23%
shiba-inu
Shiba Inu (SHIB) $ 0.000016 5.76%
hedera-hashgraph
Hedera (HBAR) $ 0.250232 0.62%
the-open-network
Toncoin (TON) $ 3.78 0.61%
leo-token
LEO Token (LEO) $ 9.79 0.07%
hyperliquid
Hyperliquid (HYPE) $ 26.22 5.07%
bitget-token
Bitget Token (BGB) $ 6.54 0.64%
litecoin
Litecoin (LTC) $ 102.09 1.64%
weth
WETH (WETH) $ 2,745.18 1.10%
usds
USDS (USDS) $ 0.999296 0.01%
polkadot
Polkadot (DOT) $ 4.72 0.46%
bitcoin-cash
Bitcoin Cash (BCH) $ 330.77 0.69%
ethena-usde
Ethena USDe (USDE) $ 0.999516 0.08%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,906.68 0.88%
mantra-dao
MANTRA (OM) $ 5.79 1.06%
uniswap
Uniswap (UNI) $ 9.34 2.27%
pepe
Pepe (PEPE) $ 0.00001 2.04%
ondo-finance
Ondo (ONDO) $ 1.35 2.12%
aave
Aave (AAVE) $ 271.99 6.95%
monero
Monero (XMR) $ 219.74 1.22%
near
NEAR Protocol (NEAR) $ 3.38 1.13%
whitebit
WhiteBIT Coin (WBT) $ 27.54 1.71%
mantle
Mantle (MNT) $ 1.12 1.48%
official-trump
Official Trump (TRUMP) $ 17.61 0.75%
aptos
Aptos (APT) $ 6.09 1.69%
dai
Dai (DAI) $ 0.99957 0.02%
internet-computer
Internet Computer (ICP) $ 7.09 0.30%
ethereum-classic
Ethereum Classic (ETC) $ 20.78 1.07%
bittensor
Bittensor (TAO) $ 356.03 0.52%
vechain
VeChain (VET) $ 0.035354 1.68%
crypto-com-chain
Cronos (CRO) $ 0.103995 2.53%
okb
OKB (OKB) $ 46.96 0.24%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.317584 1.33%
gatechain-token
Gate (GT) $ 20.86 1.53%