Apple: Mizuho sticks to Buy call, sees 19% upside

Mar. 10, 2016 7:30 AM ETApple Inc. (AAPL)AAPLBy: SA Eli Hoffmann, SA News Editor28 Comments
  • Mizuho maintains Buy rating on Apple (NASDAQ:AAPL).
  • Price target of $120. Implied upside is 18.7%.
  • "We are reiterating our Buy rating and $120 price target despite continued cautious commentary from the supply chain.
  • "We think iPhone shipment numbers will continue to vary on a quarterly basis and iPhone 7 cycle will likely not be as big as iPhone 6, while it still remains to be seen if it can grow over iPhone 6s.
  • "However, if we look at LTV of iPhone customers and assume modest growth in the installed base, we think the stock should be worth in the $120-130 range even if iPhone 7 units end up being lackluster initially. We expect supply chain data points to inflect on the positive side starting late spring/early summer."
  • Mizuho's Japan team sees production down 18% to 206M units in 2016, due to weaker expectations around iPhone 6 sales, and because they don't see iPhone 7 as a huge hit.
  • March 8: Read This Before You Short Apple
  • March 7: Apple: What Will Excite Investors?
  • Source: StreetInsider

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