CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We hold our 12-month target at $210 on a P/E of 29x our CY 25 EPS of $7.25, above peers. We keep our FY 24 (Sep.) EPS at $6.56 and adjust FY 25 to $7.10 from $7.20. AAPL posts Dec-Q EPS of $2.18 vs. $1.88, beating the $2.10 consensus. Sales rose 2%, beating expectations, led by iPhone growth of 6%, while Services grew 11%. Macs returned to growth (+1%) on easier comps and product launches (M3 chip) while iPads fell 25% (lack of new products) and Wearables -11%. Weaker Mar-Q sales outlook (implies 5% Y/Y decline on tough iPhone comps) and 13% China decline (down mid-single-digit CC) were notable negatives. Although China’s softness implies share loss, growth across the rest of Asia (+7%), installed base rise (2.2B devices), and sustained +10% Services growth are good health indicators. Gross margin execution on both the product (+280 bps seq.) and Services side (+190 bps) keep our FCF assumptions largely intact (+$100B annually). We note net cash stands at $65B and like enthusiasm surrounding GenAI/Vision Pro.