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Apple’s stock just plunged, but Wall Street is telling clients to hold on for dear life (AAPL)




child on pole covered in grease, hanging on Reuters/Darrin Zammit Lupi

  • While a swath of analysts slashed their price targets on Apple following the company’s revenue warning, the majority are not turning all-out bearish just yet.
  • Of the major Wall Street analysts covering Apple, 23 carry a “buy” rating, 23 carry a “hold” rating, and two carry a “sell” rating.
  • While nearly 30 analysts lowered their price targets on Wednesday and Thursday, just three lowered their ratings. In other words, the vast majority are advising their clients to keep holding on.
  • “Despite slowing iPhone sales, we still anticipate Apple will continue to grow its install base,” one analyst said.

Apple was the biggest story on Wall Street Thursday as shares plunged 10% to levels not seen since mid-2017 and equity analysts slashed their price targets left and right.

But the vast majority of analysts aren’t retreating into bear country, with some suggesting the company’s installed base is intact, and that the problems surrounding Apple — largely slowing iPhone sales — are confined to the Chinese market. 

After US markets closed on Wednesday, Apple told investors it would report fiscal first-quarter revenue below prior estimates, warning mainly on weak iPhone demand in China. The iPhone accounts for a hefty 63% of Apple’s total revenue, according to UBS (followed by services, at 14% of the company’s total revenue), and the announcement spooked shareholders. Apple shares have now plummeted almost 40% from their October 2018 high.

While nearly 30 analysts lowered their price targets on Wednesday and Thursday, just three shops — Jefferies, Macquarie, and Loop Capital Markets — lowered their ratings. None dropped their rating to a “sell.” Out of the major Wall Street analysts tracked by Bloomberg, 23 carry a “buy,” 23 carry a “hold,” and two carry a “sell.” 

In other words, analysts are advising investors to keep holding on despite the losses.

Take Mike Walkley, who covers Apple for Canaccord Genuity. In a note out Wednesday, he lowered his iPhone unit sales estimates and his target price on the stock from $225 to $190 — still quite a bullish view, forecasting a 33% gain from current levels. He reiterated his “buy” rating.

“Despite slowing iPhone sales, we still anticipate Apple will continue to grow its install base and believe the company’s ecosystem will contribute to ongoing growth, particularly for higher-margin Services and Other Products,” Walkley said.

“We maintain our belief Apple can expand its leading market share of the premium-tier smartphone market and the
iPhone installed base (excluding refurbished iPhones) will exceed 700M in 2018.”

Read more: Apple just issued a warning on iPhone sales, but Google Trends saw problems years ago

Others echoed a similar sentiment. Angelo Zino, who covers Apple for CFRA Research, in a note out Thursday morning, maintained his “buy” rating, but took down his price target from $215 to $195.

“We note a number of potential catalysts including the release of a video streaming offering, 5G iPhones in CY 20, and more aggressive share repurchases,” he wrote.

Zino told Business Insider he would be more concerned about Apple’s warning if its guidance appeared to be a more broad-based issue, but it was rather “iPhone-centric,” and more or less contained in China for now.

Read more: Goldman Sachs called Apple’s bombshell holiday quarter miss way back in November

Meanwhile, Wedbush analyst Dan Ives called the episode the “darkest day in the iPhone era,” but reiterated his “outperform” rating and slashed his price target from $275 to $200.

Finally, Instinet analyst Jeffrey Kvaal said China is the main macroeconomic challenge facing Apple right now. 

“Apple indicated the conditions in the rest of the world are a secondary factor,” he wrote to Business Insider in an email on Thursday.

“Within China, I think it is right to say both macro and product cycle issues are in play. Certainly the smartphone market in China has been soft for everyone, Apple included.” 

Kvaal reiterated his “neutral” rating on the stock, but took his price target down from $185 to $175. When asked whether he believed Apple’s sales warning was a more sweeping sign of economic trouble, Kvaal didn’t quite respond.

“This is well above my pay grade – I’m just a tech analyst.”

Read more:

Apple shares.Markets Insider


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More groups join in support of women in STEM program at Carleton




OTTAWA — Major companies and government partners are lending their support to Carleton University’s newly established Women in Engineering and Information Technology Program.

The list of supporters includes Mississauga-based construction company EllisDon.

The latest to announce their support for the program also include BlackBerry QNX, CIRA (Canadian Internet Registration Authority), Ericsson, Nokia, Solace, Trend Micro, the Canadian Nuclear Safety Commission, CGI, Gastops, Leonardo DRS, Lockheed Martin Canada, Amdocs and Ross.

The program is officially set to launch this September.

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The program will host events for women students to build relationships with industry and government partners, create mentorship opportunities, as well as establish a special fund to support allies at Carleton in meeting equity, diversity and inclusion goals.

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VR tech to revolutionize commercial driver training




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The Government of Alberta has awarded $1 million, and Emissions Reduction Alberta (ERA) is contributing an additional $2 million for the simulator development. Commercial deployment is estimated to begin in 2024, with the simulator to be made available across Canada and the United States, and with the Alberta Motor Transport Association (AMTA) helping to provide simulator tests to certify that driver trainees have attained the appropriate standard. West Tech Report recently took the opportunity to chat with Serious Labs CEO, Jim Colvin, about the environmental and labour benefits of VR Driver Training, as well as the unique way that Colvin went from angel investor to CEO of the company.

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Next-Gen Tech Company Pops on New Cover Detection Test




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Nanotechnology firm ZEN Graphene Solutions Ltd. (TSX-Venture:ZEN) (OTCPK:ZENYF), is working to develop technology to help detect the COVID-19 virus and its variants. The firm signed an exclusive agreement with McMaster University to be the global commercializing partner for a newly developed aptamer-based, SARS-CoV-2 rapid detection technology.

This patent-pending technology uses clinical samples from patients and was funded by the Canadian Institutes of Health Research. The test is considered extremely accurate, scalable, saliva-based, affordable, and provides results in under 10 minutes.

Shares were trading up over 5% to $3.07 in early afternoon trade.

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