KeyBanc on Apple (AAPL): 'We think valuation is stretched'

KeyBanc analyst Brandon Nispel reiterated a Sector Weight rating and {REMOVEPT} price target on Apple (NASDAQ: AAPL).

The analyst commented: "April Hardware KFLD -16% M/M, Below Three-Year Average; We remain SW AAPL. Our KFLD shows Indexed Spending -16% m/m, which is below the three-year avg of +-12% m/m, and -6% y/y vs. +10% y/y in March. We see this as in line with expectations as AAPL growth, at least in the U.S., appears to be reverting toward normal seasonality. We think this shows initial cracks in the bulls' multi-year compounding growth view where growth upside needs to come from International markets. We are less concerned around margins as mix should be a tailwind. We think valuation is stretched and thus are becoming more cautious."

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 $298.87 yesterday.

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