Morningstar sees Apple as rails – OBI Online

Apple is hard punished on Wall Street, and pulls down over seven percent to $ 96.79 on Wednesday morning in New York.

The reaction comes after the company presented quarterly after the close yesterday. Revenues of $ 50.6 billion in Apple’s accounting Q2 was 13 percent lower than the same period last year, representing the first quarterly decline in earnings since 2003.

Apple CEO Tim Cook admits that quarter has been hectic and challenging, and in the short term looks headwinds to continue – both macroeconomic and currency front.

– Viewing an Apple shining

Morningstar analyst Brian Colello argues in an update that he “sees Apple as shining”.

– the guidance for Q3 was disappointing on several fronts. Whatever we think iPhone business and iOS ecosystem continues to see structurally healthy out and we do not think Apple’s lack of growth point to a weakened competitive position or loss of customer loyalty, he said.

Colello constantly see for themselves that revenue and iPhone sales come back, perhaps as soon as this coming autumn with iPhone 7.

– Fair value: $ 133

– When the stock traded as low as $ 96, we seem Apple is priced as if the iPhone has already peaked and runs a persistent, secular decline in the face. iPhone look no further as a høyvekstområde for Apple, but we continue to believe that demand will be more resistant than the stock price reflects that.

– So-called “customer switching costs” for iOS ecosystem remains strong and will in our eyes have the potential to increase over time, continues the analyst.

Morningstar reserve its “fair value” point estimate of $ 133 on the stock, and still consider Apple as one of the best investment ideas in technology.