Analysts have been turning around on the new iPhone 5s and iPhone 5c this week after Apple Inc. (NASDAQ:AAPL) revealed that it sold more than 9 million of the devices last weekend. A new analysis from ABG Sundal Collier puts a Sell on the stock, however, playing the new rules of Apple Inc. (NASDAQ:AAPL) guidance.
The report takes a look at the Apple Inc. (NASDAQ:AAPL) revision of its earnings guidance released last Monday. Apple Inc. (NASDAQ:AAPL) told the public that earnings and margins would likely come in at the higher end of guidance in the company's coming earnings report as a result of the opening weekend sales. That didn't impress the analyst that authored the ABG Sundal Collier report.
High guidance, low expectations for Apple
Per Lindberg, the analyst who authored the report said, if the demand for the new iPhone units is as "incredible" as some analysts seem to believe, the company's guidance should have been raised outside of the levels already set by the company.
That means that Apple Inc. (NASDAQ:AAPL) is unlikely to exceed those earnings numbers when it comes time to release its earnings report, and that might mean the market will become negative on the company. The report puts a price target of $400 on Apple Inc. (NASDAQ:AAPL) and rated the firm a Sell.
Lindberg is cynical about the achievement represented by the sale of 9 million Phones last weekend. Those sales represent the "buy-everything-Apple-makes-fan-club" along with first day sales in new markets, like China, and on new carriers. The numbers also represent the accumulation of iPhone units in inventory.
Market response to Apple
In the last week the market has congratulated Apple Inc. (NASDAQ:AAPL) on its iPhone sales. Shares have risen by around 4% in the last five days trading and overall the market seems much more confident in the company than it was last week.
Essentially, analyst Per Lindberg is saying that Apple Inc. (NASDAQ:AAPL) sales last weekend were not all they're cracked up to be. The company did well, but did not do well enough for the analyst to change any targets. Apple Inc. (NASDAQ:AAPL) investors are in trouble if the Norwegian Investment Bank is right about last weekend's tallies.