Apple: a buyer, UBS is cautious on iphone sales
(CercleFinance.com) - Ahead of Apple's quarterly accounts, which will be unveiled shortly, yesterday UBS maintained its buy rating on the share, with a target price of 180 dollars.
This represents upside potential of around 15%.
The Cupertino based technology group will publish its Q1 2018/2019 results (from end-October to end-December), for which it recently issued a profit warning. Analysts expect revenues 83.8 billion dollars and EPS of 4.14 dollars per share. Note that UBS expects 64 million iPhone sales, the group's flagship product, compared with the 68 million units expected by the consensus. "Most importantly, Apple will disclose Services margin for the first time," UBS says, which expects a rate in the “low-60s”.
In addition, UBS expects Q2 2018/2019 sales of 56.2 billion dollars, with 41.5 million iPhones sold (while the consensus expects 45 million units), as well as EPS of 2.43 dollars. The market should be sensitive to the margin on services, which is expected to be between 61% and 62%, UBS says.
Copyright (c) 2019 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.
This represents upside potential of around 15%.
The Cupertino based technology group will publish its Q1 2018/2019 results (from end-October to end-December), for which it recently issued a profit warning. Analysts expect revenues 83.8 billion dollars and EPS of 4.14 dollars per share. Note that UBS expects 64 million iPhone sales, the group's flagship product, compared with the 68 million units expected by the consensus. "Most importantly, Apple will disclose Services margin for the first time," UBS says, which expects a rate in the “low-60s”.
In addition, UBS expects Q2 2018/2019 sales of 56.2 billion dollars, with 41.5 million iPhones sold (while the consensus expects 45 million units), as well as EPS of 2.43 dollars. The market should be sensitive to the margin on services, which is expected to be between 61% and 62%, UBS says.
Copyright (c) 2019 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.