Apple Inc. (NASDAQ:AAPL) shares rose on Friday as well, in spite of a muge launch party held by Samsung for its Samsung Galaxy S4. The stock may be upgraded by analysts after Bill Miller of Legg Mason said that he has rated the stock an Overweight.
Apple analyst at Piper Jaffray, Gene Munster was also cited on CNBC, who supposedly said that the Apple stock is enjoying a relief rally after a less scary than expected debut of Galaxy S4.
Steve Milunovich of UBS has reiterated a Buy rating on Apple’s stock. However, he has cut his price target on the stock to $560, mentioning that he is not sure about the latest supply-chain buzz of the reduced orders of iPhones resulting in a poorer demand projection. He said that it is better to stay careful when it comes to demand. So he has cut his iPhone estimates for the March quarter and also for the entire year.
Milunovich now projects Apple selling about 35.5 million units of iPhone during fical second quarter. This brings his revenue for iPhone to $21.9 for the present quarter.
As for the entire year, Milunovich now projects 146.7 million iPhones, revenue amounting to $177.4 and EPS of $42.14. This is down from a previous 149.2 million units of iPhone. The Wall Street is still expecting figures of $181.4 billion and $44.
As for the Samsung S4, Milunovich said that the device launch takes the drumbeat of negative news a step further. Shareholders deserve some good news that could take dividend payout by Apple into account, or even an agreement with China Mobile.
Milunovich is not the only person to be sounding careful.
Sterne Agee’s Shaw Wu has reiterates a Buy on Apple’ shares. He has reduced his price target on the stock to $630.