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Bernstein outlines how Apple rally could continue after launch event

Published 09/05/2017, 11:59 AM
© Reuters.  Bernstein outlines how Apple rally could continue after launch event
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  • Bernstein reiterates its Outperform rating on Apple (NASDAQ:AAPL) and outlines three ways the company can keep the rally going after the September 12 launch event, per CNBC.
  • Analyst Toni Sacconaghi writes in a note that Street consensus on iPhone 8 average selling prices ((ASPs)) and unit shipments could be overly conservative and Apple shares have historically outperformed when its product cycle exceeds expectations.
  • Sacconaghi also notes that Apple shares would need to trade at $186 on FY18 estimates to match the peak multiple during the last iPhone launch cycle. Apple is well below that multiple with its current trading price around $163.
  • The final rally driver could be currency tailwinds and the launches of other products like the Apple Watch Series 3, expected at the launch event, and the December launch of the HomePod smart speaker.
  • Price target: $175.
  • Apple shares are down 0.64%.
  • Previously: Piper Jaffray says fewer customers show iPhone upgrade interest this year (Sept. 5)
  • Now read: Roku: Great Product, Bad Business?

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