Merrill Lynch is bullish on Apple, says talk of iPhone sales peaking in China is bogus
Merrill Lynch, on the other hand, says talk of iPhone sales peaking in China is bogus. Merrill analyst Wamsi Mohan raised his rating on Apple's shares today from "neutral" to "buy". The analyst told investors in a memo that demand for the iPhone remains strong in China based on a survey taken by the brokerage firm. That flies in the face of a weak Chinese economy and other reports stating that Apple has cut component orders by 30% for its newest iPhone models.
Now here is where it gets confusing for many investors. Munster is cutting his expectations of iPhone sales for 2016, and doesn't see year-over-year growth returning until the Apple iPhone 7 is launched next September. Still, he happens to agree with Merrill's Mohan that Apple's stock should be bought. Munster calls Apple the top stock of 2016, while Mohan has a target of $130 for the shares. That would be a 30% gain from Apple's closing price tonight of $99.96.