- Bank of America Merrill Lynch (NYSE:BAC) analyst Wamsi Mohan calls Apple (NASDAQ:AAPL) “a name to own in volatile market conditions” due to its “cash cushion like no other.
- Mohan predicts Apple will raise its dividend 10% this year, will generate $50B to $60B in FCF annually for the next two years, and will announce a new share buyback in April.
- On the iPhone X, the analyst sees “low single digit growth and mix adjusted ASP growth into 2019, with upside to gross margins.”
- Firm reiterates its Buy rating for Apple and reaffirms its $220 price target (38% upside on yesterday’s close and $1.1T market valuation).
- More action: Barclays (LON:BARC) says iPhone battery replacement wait times appear to be on the decline but that could potentially harm Apple.
- Analyst Mark Moskowitz reached out to 30 U.S. Apple stores and found out that wait times were averaging 4 to 6 weeks last month and have now dropped to 2 to 4.5 weeks.
- But increasing replacement availability could mean fewer iPhone sales and drop iPhone ASPs.
- The firm previously said the replacement program could cost Apple up to 16M in iPhone sales.
- Barclays rates Apple at Neutral with a $170 price target.
- Apple shares are up 0.2%.
- Now read: Apple: Valuation Update After Quarterly Results
Original article