Apple price target lowered to $187 from $222 at Piper Jaffray
Piper Jaffray analyst Michael Olson lowered his price target for Apple to $187 from $222 after the company reduced its revenue guidance for the December quarter. The stock in premarket trading is down 8%, or $12.04, to $145.88. The guide down was largely attributed to weaker than anticipated iPhone sales in Greater China due to macroeconomic factors, including trade tensions with the U.S., Olson tells investors in a research note. Outside of iPhone weakness in China and some emerging markets, Apple reported strength in non-iPhone, with revenue for other categories collectively growing 19% year-over-year, an acceleration from non-iPhone revenue growth reported in the past several quarters, adds the analyst. Olson reduced his fiscal 2019 and 2020 revenue estimates by 6% and 4%, respectively, as a result of the guide down but keeps an Overweight rating on Apple shares. He now applies a multiple that is a slight discount to Apple's two-year average due to uncertainty regarding the timing of iPhone headwinds in China, and potentially elsewhere, over the coming quarters.