Following Apple’s record holiday quarter earnings, Tim Cook emphasised the growth coming from emerging markets, which more than doubled in markets such as Brazil and mainland China compared to last year. Now, it is time for analysts to lament on the numbers and share their take on the report. Fortune has published some excerpts from the notes sent to investors.
Katy Huberty of Morgan Stanley was absolutely stunned by the numbers and says Apple stock is the best idea to invest in. She pointed to the 46% growth of the tech giant, as well as the spike of the average sales price of the iPhone, and double-digit Mac unit growth.
Walter Piecyk of BTIG laments on the fact that Apple has raised the bar once again, making history yesterday. While surpassing the 74.5 million units will be a tough job, Apple is able to do it, because not everyone upgraded to an iPhone 6 or 6 Plus in the December quarter of 2014.
“The strongest criticism you may hear today is that Apple created too difficult a comp for the December 2015 quarter based on an unsupported assumption that ‘everyone upgraded their phone in 2014.’ We believe that assumption is wrong… The bottom line is that Apple’s current stock price (even after rising more than 5% after the close) is substantiated by the growth potential of its existing products with a free look on the growth potential of new product categories.” Buy. Raising target to $150 from $128.
Steve Milunovich of UBS says, “Seems like the whole world wants an iPhone,” so buying Apple stock is a no-brainer, he suggests.