Crispr Therapeutics shares tumble after significant earnings miss
In summary, while acknowledging the potential for growth and the historical performance of Apple, Redburn-Atlantic’s stance reflects a degree of caution due to the less predictable environment the company is facing, leading to a maintained Neutral rating despite the raised price target. For investors seeking comprehensive analysis, InvestingPro offers an in-depth Pro Research Report on Apple, part of its coverage of 1,400+ top US stocks, providing clear, actionable intelligence through intuitive visuals and expert analysis. For investors seeking comprehensive analysis, InvestingPro offers an in-depth Pro Research Report on Apple, part of its coverage of 1,400+ top US stocks, providing clear, actionable intelligence through intuitive visuals and expert analysis.
James Cordwell of Redburn-Atlantic commented on the changes, noting a modest reduction in the EPS estimates for the coming years. The revised figures are now set at $7.23 for FY25, $7.92 for FY26, and $8.66 for FY27, down from the earlier projections of $7.39, $8.21, and $8.91, respectively. This adjustment reflects the impact of increasing currency headwinds and a postponement in the expected AI-driven boost to iPhone upgrade cycles, which is now anticipated to be at least a year away.
Despite the increase in the price target, the firm’s valuation of Apple stock remains cautious. Cordwell explained that at the after-hours trading price of $245, Apple’s stock is trading at a price-to-earnings (PE) multiple of 30 times the calendar year 2026 estimates, which represents a 40% premium compared to the market. This premium is deemed "full" given the current uncertainties surrounding Apple’s future. Current InvestingPro data shows an even higher P/E ratio of 39.24x, and the stock appears overvalued based on InvestingPro’s proprietary Fair Value model. Investors seeking deeper insights can access over 30 additional financial metrics and 13 exclusive ProTips for Apple through InvestingPro’s comprehensive research platform.
The new year-end 2025 target price of $230 implies a PE multiple of 28 times, which is at the lower end of Apple’s historical range relative to the S&P 500. This 30% premium to the S&P 500 is more conservative than the stock’s recent historical average, suggesting a more tempered outlook from Redburn-Atlantic.
In summary, while acknowledging the potential for growth and the historical performance of Apple, Redburn-Atlantic’s stance reflects a degree of caution due to the less predictable environment the company is facing, leading to a maintained Neutral rating despite the raised price target.
In other recent news, Apple Inc (NASDAQ:AAPL). reported financial results for the first fiscal quarter, with revenues and earnings per share generally aligning with expectations. Despite a slight decrease in iPhone sales, the company’s robust services sector compensated for these softer sales. Apple also provided guidance for the second fiscal quarter, projecting consistent revenue growth with the first quarter. Analyst firms Baird, Barclays (LON:BARC), JPMorgan, BofA Securities, and TD Cowen have all recently adjusted their price targets for Apple, while maintaining various ratings. UBS and Piper Sandler reiterated a Neutral rating, following the slight decline in iPhone revenue. These are recent developments in the financial performance and future outlook of Apple Inc.
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