![\"\"](\"https:\/\/icrowdnewswire.com\/wp-content\/uploads\/2020\/06\/3998-logo.png\"){kind=logo}
<\/p>\n<\/p>\n
![\"article](\"https:\/\/photos5.appleinsider.com\/gallery\/36953-69121-49025722846_9acd10d33e_k(2)-xl.jpg\")
<\/div>\nInvestment bank Cowen has raised its AAPL price target to $470 on Apple’s better-than-expected June quarter results and its continuing status as a “defensive” stock.<\/p>\n
During the June quarter, sales of iPhones were resilient and strong Mac and iPad demand showed the “durability” of Apple’s portfolio, lead analyst Krish Sankar wrote in a note to investors seen by AppleInsider<\/em>. The results have set an “encouraging outlook” for Apple into 2021, based mostly on continued Services momentum and the upcoming “iPhone 12<\/a>” cycle.<\/p>\n<\/div>\n Apple’s Q3 results were actually “well above” the highest consensus. Ahead of the earnings report, Sankar originally forecast<\/a> quarterly revenue of $50.18 billion. Apple actually reported $59.7 billion in revenue.<\/p>\n<\/div>\n The company’s iPhone business actually managed to grow 2% year-over-year, despite declining smartphone demand. Sankar estimates that Apple shipped 35 million units in the quarter, and estimates that it’ll ship 40 million in the next one.<\/p>\n<\/div>\n Thanks to new work-from-home and remote education trends, both the iPad and Mac spheres showed growth in the June quarter — up 31% and 22% year-over-year, respectively.<\/p>\n<\/div>\n For Services, Apple was able to achieve a milestone of doubling 2016 sales two quarters early. Sankar notes that the “long term growth profile for the Services segment remains intact and segment gross margin reached a record 67.2%vs the LTM average of 64.5%.”<\/p>\n<\/div>\n On capital returns, the analyst estimates around $77 billion in buyback authorization. Apple repurchased $16 billion worth of AAPL in the June quarter.<\/p>\n<\/div>\n “A diversified hardware portfolio helped AAPL weather a shift to WFH spendingwhile supporting robust FCF. Looking into CY21, a 5G iPhone cycle coupled with a growingServices business makes AAPL a defensive\/growth stock to own in a (post) COVID-19 world,” Sankar writes.<\/p>\n<\/div>\n The analyst is bumping Cowen’s 12-month AAPL price target to $470, up from $400. That’s based on a 23x earnings multiple on the core business and a 35x multiple on Services, leading to a blended 28x price-to-earnings multiple on a 2021 earnings-per-share estimate of $16.83.<\/p>\n<\/div>\n Shares of AAPL were trading at about $410 on the NASDAQ through most of Monday morning. Apple’s stock price nearly immediately jumped 6.42% after Thursday’s earnings call, eclipsing the $400 landmark<\/a>.<\/p>\n<\/div>\n<\/div>\n Tags:<\/b> Mike Peterson <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"\n\n\n\n\n\n\n\nSee Campaign: <\/strong>https:\/\/appleinsider.com\/inside\/iphone-12<\/a>
Contact Information:<\/b>
Mike Peterson <\/p>\n
<\/a>, Wire<\/a>, United States<\/a>, English<\/a><\/p>\n<\/div>\n
\nContact Information:<\/h3>\n
Investment bank Cowen has raised its AAPL price target to $470 on Apple’s better-than-expected June quarter results and its continuing status as a “defensive” stock. During the June quarter, sales of iPhones were resilient and strong Mac and iPad demand showed the “durability” of Apple’s portfolio, lead analyst Krish Sankar wrote in a note … Continue reading Cowen bumps AAPL to $470, says it’s a ‘defensive stock’ for a post-coronavirus world<\/span><\/a> Continue Reading