BofA update shows where active managers are putting money
Investing.com - KeyBanc has maintained its Sector Weight rating on Apple (NASDAQ:AAPL) as the firm adjusts its quarterly estimates based on recent spending data. According to InvestingPro analysis, Apple currently trades above its Fair Value, with a P/E ratio of 32.6x and strong financial health metrics.
The investment bank raised its fiscal third-quarter estimates above consensus while simultaneously lowering its fiscal fourth-quarter projections below market expectations.
KeyBanc’s analysis shows June’s indexed spending was down 13% month-over-month, significantly below the three-year average increase of 12%, and down 7% year-over-year compared to May’s 22% growth.
For the fiscal third quarter, KeyBanc’s data showed spending increased 6% quarter-over-quarter, outperforming the three-year average decline of 12%, which the firm attributes to higher activity levels and upgrade rates reported by U.S. carriers.
While KeyBanc expects Apple to deliver at the high end of its low-single-digit to mid-single-digit total revenue growth guidance for the fiscal third quarter, it anticipates the company will guide fiscal fourth-quarter growth to approximately low-single-digits, below current market consensus.
In other recent news, Apple has faced several key developments. Evercore ISI reiterated an Outperform rating on Apple, maintaining a price target of $250.00, after the departure of Ruoming Pang, a leader in Apple’s AI division. Pang’s exit is part of ongoing leadership changes under Mike Rockwell, who has been restructuring the team. Meanwhile, Goldman Sachs has upheld its Buy rating and a $253.00 price target on Apple, acknowledging challenges in the Chinese market, where foreign-branded phone shipments have declined. Despite these challenges, Apple managed to increase its market share in China, partly due to strategic discounting.
Additionally, Apple is contesting a $587 million fine imposed by the European Union for allegedly violating the Digital Markets Act. The company has filed an appeal, arguing that the EU’s decision exceeds legal requirements. In another development, UBS maintained a Neutral rating on Apple with a $210.00 price target, following a trade deal between the United States and Vietnam. While Vietnam is becoming more significant in technology supply chains, UBS notes that China’s role in Apple’s supply network remains dominant. These recent developments highlight Apple’s ongoing strategic maneuvers in the face of global market challenges and regulatory scrutiny.
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