Investing.com
Published Nov 09, 2022 18:58
By Senad Karaahmetovic
Bernstein analysts reiterated a Market Perform rating on the Apple (NASDAQ:AAPL) stock as they believe the overall risk-reward is “neutral to modestly negative.”
The analysts believe consensus estimates appear to be “too high” for Apple as consensus isn’t pricing in seasonality due to Apple’s extra week in December. They see Apple’s year-over-year (YoY) revenue growth falling by 8% in the March quarter while consensus is calling for a 0.3% growth.
“We have not yet updated our FY 23 estimates to reflect Apple's press release, and suspect they are more likely to go down than up. While it is possible that delays in production could smooth out seasonality in Q1 and Q2, we still believe that 2H FY 23 and FY 23 estimates are too high,” the analysts said in a client note.
The key question remains whether Apple pointed in its press release to delayed or lost shipments.
“We believe the latter scenario is more likely; right now 10 (out of Apple's 40+) analysts have lowered FY 23 revenue and EPS by an average of 2%-3%.”
The analysts also told clients that Apple’s relative premium to peers is high compared to history.
“We note that while Apple has had few periods of material underperformance over the last 15 years, nearly all have occurred in the 3 to 6 months following the release of the iPhone, typically reflecting disappointing iPhone cycles,” the analysts added.
At 05:30 EST (10:30 GMT), Apple stock is down by 0.7% in pre-market trading.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.