Apple Inc. (AAPL) – Is This The Right Time To Buy?

Colin Gillis of BGC Partners revised upwards the rating on Apple Inc. (NASDAQ:AAPL) from ‘Hold’ to ‘Buy’, viewing the declining prices showcases a good opportunity to initiate a buying position on the stocks. According to Gillis, the shares are losing their shine amid negative rumors but can surge up to the $500 level on any good news.

Apple Inc. (AAPL) - Is This The Right Time To Buy?

According to the analyst the concerns are still high for the smartphone and tablet market, and Apple Inc. (NASDAQ:AAPL) is going through a challenge right now. The BGC partners are upgrading the stock on the following points:-

  • Apple Inc. (NASDAQ:AAPL) has not forecasted any negative earnings estimates while providing forecasts for its March quarter results. Thus, positive earnings and revenues are expected from the company.
  • The forecasts for the next quarter in June will be lukewarm, but that is expected from the phone maker. The analysts estimate that the revenue will increase 3 percent year over year in the quarter ending June.
  • The earnings could increase if Apple Inc. (NASDAQ:AAPL) successfully produces leverage on its gross margin. The analyst firm has kept EPS for the quarter of March over the consensus.
  • The operating system of the phone can be expected to be overhauled by designer Jony Ive through, which the company may be able to increase the popularity of its iPhone 5S. The new OS will provide an all new look to the software, however, no possible change in software.
  • The company plans of increasing its dividend, which would attract the investors to invest in the shares.
  • The Smartphone market has been one of the most popular markets marked by increasing demands for the product with expected shipment of 1 billion units in 2013.

The shares of Apple Inc. (NASDAQ:AAPL) had declined more than 35 percent from last September when it reached its all time high of $705. In the past week, the shares of the iPhone maker tumbled below $400 for the first time since 2011. The shares price fell due to concerns that the demand of both iPhone and iPad has been going low.

While some investors freed their portfolio of Apple Inc. (NASDAQ:AAPL) shares, the others believe that there is still hope that the shares will rebound from its current position.

The company will report its earnings today after the market close. As per the estimates, Apple Inc. (NASDAQ:AAPL) will earn revenue of $41.4 billion, increase of 5.6 percent from $39.2 billion last year. The EPS is estimated to come in at $9.73, a decline 21 percent from $12.30 last year. The Crowell, Weedon & Co analysts have downgraded their fiscal Q2 and Q3 revenue and EPS forecasts. The reason they said for this downgrade was the decline in orders in advance of a possible product transition, and the ongoing agreement of iPhone with China mobile in China, could not reach any conclusion.

About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at