Apple (AAPL) PT, Estimates Raised at Nomura; 'Neutral' Maintained
Nomura Securities analyst Stuart Jeffrey boosted his price target on Apple (NASDAQ: AAPL) from $545 to $574 following Q2 results but maintains a Neutral rating.
Jeffrey comments, "iPhone sales proved surprisingly robust in Q2, driving better-than-expected revenues and gross margins. Management leveraged the good news by boosting its share buyback program by 50% and raising the dividend. China and Japan, where Apple recently added China Mobile and Docomo to its customer list, drove 93% of absolute year-on-year revenue growth. Excluding these markets, growth was just 0.4% yoy, suggesting that growth opportunities are diminishing. We see little risk of a material negative disappointment in the coming months now that (achievable) June guidance has been given."
The firm lifts FY14E EPS from $44.28 to $43.73; FY15E EPS from $46.52 to $45.22.
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Shares of Apple closed at $524.75 yesterday.