Apple Inc. (NASDAQ: AAPL), which has
behaved fairly predictably during the last five iPhone announcements, may be facing a greater near-term downside risk with the
release of the iPhone X, though the stock likely will outperform over the next six to 12 months, a UBS analyst predicted
Tuesday.
Steven Milunovich set a price target of $180 and rated Apple a
Buy. It was trading largely unchanged at $160.74 at last check. Apple's unveiling of its latest product line is scheduled for
Tuesday at 1 p.m. ET.
Apple’s Uncanny Consistency
Milunovich said in the past, Apple has been down two weeks before an iPhone launch, up a percentage point or two when the phone
becomes available about two weeks later, then weak after the launch, then up again when earnings are announced.
He made three predictions:
- “We expect (iPhone X) entry pricing may be lower at $900 than some think or at most $1,000—it is easier to argue for higher
earnings with a higher ASP though we think this overlooks the potential negative demand effect of a high price.”
- “There might be concerns regarding OLED availability or whether facial recognition (Face ID) works as well as Touch ID.
- “The stock is up an unusually strong 37% year to date and technically now is slightly down from an overbought position. A new
Watch and Apple TV along with HomePod commentary probably won't have much impact unless there are surprises.”
Related Link:
Importance Of IPhone X: Apple Has Moved The Market Before
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