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KeyBanc upgrades Apple on iPhone X pricing

Published 10/16/2017, 09:03 AM
© Reuters.  KeyBanc upgrades Apple on iPhone X pricing
AAPL
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  • KeyBanc upgrades Apple (NASDAQ:AAPL) from Sector Weight to Overweight with a $ price target.
  • Analyst Andy Hargreaves says Apple has “a more aggressive strategy” with the high iPhone X entry price and “storage step-up pricing” that will bring in more gross profit than the firm expected.
  • Hargreaves expects FY18 iPhone ASP and gross margin at $760 and 39.5%, respectively, compared to the $725 and 38.6% consensus.
  • The analyst also ups his FY18 EPS estimate to $11.68 from $11.07 compared to the $11.03 consensus.
  • Apple shares are up 0.8% premarket.
  • Previously: Foxconn starts iPhone X shipments but only 46.5K units (Oct. 16)
  • Now read: Apple: Earnings Expectations For Fiscal Q4

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