Apple guidance could miss, but expectations low, says Deutsche Bank - InvestingChannel

Apple guidance could miss, but expectations low, says Deutsche Bank

Deutsche Bank analyst Sidney Ho expects Apple’s fiscal Q4 results will be generally in line with Street estimates, but he believes management comments on demand will be more cautious given the current macro environment and that the company’s qualitative revenue guidance for Q1 could be below current estimates. That said, Ho thinks the slower growth is already anticipated by the market, especially given recent media reports suggesting Apple is cutting iPhone orders and the stock pulling back 20% from the August peak. He also believes the company’s “strong balance sheet will shine in the current environment,” supporting its dividend payments and share repurchases totaling $100B annually. With investor expectations already low heading into earnings and the stock trading at a “reasonable valuation,” Apple’s risk/reward profile is attractive, Ho tells investors in a research note. The analyst keeps a Buy rating on the shares with a $175 price target.

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