BAML: Apple/China Mobile hopes too high

|About: China Mobile Limited (CHL)|By:, SA News Editor

"Heightened expectations of significant incremental iPhone units from China Mobile (CHL) are unwarranted and investor/Street expectations are simply too high," says BAML reiterating Apple (AAPL) as a Hold and maintaining estimates for FQ14, but hiking the price target to $600 from $530 on belief the stock will trade at a higher multiple.

Noting there are already 30M iPhone users on CM networks, the team sees incremental units of less than 10M vs. Street hopes of 20M-30M or more, and reminds the CM announcement hopes have the stock up 9% over the last two weeks vs. a flat S&P.

Both stocks are down 0.4% premarket