Financial Services

Here are the biggest analyst calls of the day: Apple, Chipotle, IBM, Xerox, U.S. Steel & more


Credit Suisse said Apple‘s iPhone sales are in a, “difficult,” spot and that it will take time to see how its service business pans out.

“As Apple‘s iPhone matures, the company is looking to transform itself into a more recurring, higher-growth, and ultimately higher-value business as it pushes to increasingly monetize its massive 900mn iPhone installed base. We recognize the potential in the shift to Services, which we expect will reach $65bn in revenue by FY21, but believe it will take time for that view to play out. Near-term upside from here likely requires the multiple to re-rate higher; investor perception of Apple as a hardware-centric company will be hard to shake against a backdrop of double-digit iPhone sales declines (CSe -11% y/y in CY19), in our view. With the stock up 40% from its Jan low and near a peak multiple (15x CY20 EPS), we remain on the sidelines awaiting a better entry point and/or line-of-sight to significant Services-led upside to break out of the historical valuation range.”

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