Piper Jaffray's Muster Says Weak Apple (AAPL) March Quarter Expected

Piper Jaffray analyst Gene Munster defended Apple (NASDAQ: AAPL) amid reports of production cuts for the iPhone 6 Plus and iPhone 6S Plus. The firm reiterated an Overweight rating and price target of $179.

Munster suggests this is already well know and expected by investors.

"Based on 10 recent buy side conversations, we believe investors are bracing for March iPhones well below Street estimates of 58.5 million with some thinking units could be as low as 50 million," he commented.

He said while actual March iPhones remain a wildcard, history suggests that triangulating news of supplier and production cuts tends to have less correlation to actual reported units.

"Given the magnitude of investor concern around March as well as broader interest level in owning shares of AAPL, we expect the stock to perform better after the March guide expected at the company's 1/26 earnings report. Separately, we note iPhone comps get easier in Jun-16 vs Mar-16."

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $102.71 yesterday.

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