2020-02-18 05:09:25 | Apple should be bought on weakness from sales warning, says Piper SandlerPiper Sandler analyst Michael Olson lowered his estimates for Apple's March quarter, but left estimates for all other future periods unchanged, after the company announced that it does not expect to meet quarterly revenue guidance due to the ongoing impact of the coronavirus. Any material weakness in Apple shares as a result of the revenue shortfall will prove to be a buying opportunity, as, in all likelihood, this is a temporary situation that will leave future quarters largely unaffected, Olson tells investors in a research note. In fact, the iPhone supply constraints in the current quarter could result in pent-up demand for future quarters, the analyst adds. Looking at the remainder of Apple's fiscal 2020, Olson believes current iPhone demand outside of China appears to be strong and that its non-iPhone business remains solid while anticipation is growing for 5G iPhones. The analyst keeps an Overweight rating on Apple with a $343 price target. The stock in premarket trading is down 4%, or $11.84, to $313.11. | |
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