Apple: Jefferies maintains 'buy' after 'strong' results
(CercleFinance.com) - Jefferies maintains its "buy" rating on Apple, with a target price of 265 dollars, after the technology giant reported "strong" quarterly results thanks to record iPhone sales and services activity.
In a note to clients, the broker pointed out that Apple plans to stop disclosing unit sales figures, fueling fears that the company has "something to hide."
"But Apple will disclose services gross margin for the first time ever, a potential catalyst for the stock," the analyst wrote in the report.
According to Jefferies, this new kind of disclosure will shift focus to services margins, away from iPhone units.
"We believe Apple intends to tell a compelling services story," Jefferies said, believing that the service business has a higher gross margin than hardware.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a note to clients, the broker pointed out that Apple plans to stop disclosing unit sales figures, fueling fears that the company has "something to hide."
"But Apple will disclose services gross margin for the first time ever, a potential catalyst for the stock," the analyst wrote in the report.
According to Jefferies, this new kind of disclosure will shift focus to services margins, away from iPhone units.
"We believe Apple intends to tell a compelling services story," Jefferies said, believing that the service business has a higher gross margin than hardware.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.