- Apple (NASDAQ:AAPL) initially slipped last night following a decline in iPhone shipments and sluggish guidance. It later rallied to a 3.5% gain as investors liked what they heard on the earnings call.
- What's the sell-side up to? Keybanc's Andy Hargreaves downgrades to Sector Weight from Overweight, as does Bernstein.
- Citigroup (NYSE:C), meanwhile, adds Apple to its Focus List, with $200 price target, and Needham lifts its price target to $210 from $200.
- The Street's Eric Jhonsa says not to overlook CFO Luca Maestri's conference call comment about the company becoming "cash neutral" over time. It's a big deal, says Jhonsa, noting $163B currently in net cash and annual free cash flow of $50B and growing.
- It sets the stage for giant capital returns, says Jhonsa, and don't rule out a major acquisition.
- Conference call transcript
- Shares are currently down 2.35%, and off nearly 10% since topping out in the middle of January.
- Previously: Apple -1% on Q1 unit sales drop, downside guidance (Feb. 1)
- Now read: Apple Needed A Positive Reaction To Earnings Or Faces A Technical Downgrade
Original article