AAPL stock may have taken a hit in pre-trading following missed Q2 expectations and relatively weak guidance for Q3, but early reactions suggests that analysts remain largely optimistic.
Analysts did note that continued declining revenues in China was cause for concern, but this was offset by strong and growing services revenue, increased capital returns, and expectations of an iPhone 8 super-cycle…
Of the eight analyst notes seen by Business Insider, seven rated the stock a buy and the eighth – Deutsche Bank – rated it a hold. Deutsche Bank analysts yesterday suggested that the iPhone 8 might be delayed until next year, though with very little in the way of evidence.
The seven remaining analysts had target stock prices ranging from Goldman Sachs’ $150 to Credit Suisse’s $170. The latter said there was much reason for optimism.
FCF refers to free cash flow, defined as operating cash flow minus capital expenditures.
Bank of America Merrill Lynch additionally pointed to the strong capital return program and the flexibility generated by cash reserves of more than a quarter of a trillion dollars, while Macquarie emphasized services revenue.
You can read the full positions over at Business Insider.
