RBC Capital Reiterate Outperform Ratings on Apple Inc. (AAPL) and Lockheed Martin Corporation (LMT) Following Earnings Announcements


Today, analysts at RBC Capital highlighted their views on technology giant Apple Inc. (NASDAQ:AAPL), and aerospace firm Lockheed Martin Corporation (NYSE:LMT), following recent earnings announcements. Let’s take a look and see what the analysts have to say about AAPL and LMT.

Apple Inc.

Amit Daryanani, a technology analyst at RBC Capital, came out today with commentary on Apple, as the tech giant released its most anticipated earnings. Apple reported solid Q1/F’16 results in line with estimates driven by strong iPhone sales and continued growth in services. However, as was widely expected, March guidance was weak.

Daryanani observed, “AAPL reported an in-line Dec-qtr and guided Mar-qtr better than buyside expectations (but below street). Stock saw a negative reaction reflecting: 1) macro concerns, a huge shift in tone as AAPL sounded more susceptible to China macro vs. 90-days ago, 2) Services disclosure: fear is are they doing it because iPhone units are ex-growth? Fundamentally, iPhones tracked expectations for Dec-qtr and Mar-qtr is expected to see ~20% unit decline reflecting tougher compares and muted “s” cycle. Positively, gross-margins held in with Dec-qtr at 40.1% and Mar-qtr was guided towards 39.0-39.5%.”

“We think AAPL remains rangebound until we get closer to Apr-qtr (capital allocation update) and beyond that we expect iPhone 7 cycle to drive momentum in H2:16,” the analyst concluded.

Daryanani reiterated an Outperform rating on Apple stock, with a price target of $130, which implies an upside of 37.5% from current levels.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Amit Daryanani has a yearly average return of -2% and a 47% success rate. Daryanani has a 8.5% average return when recommending AAPL, and is ranked #2764 out of 3607 analysts.

Out of the 54 analysts polled by TipRanks, 41 rate Apple stock a Buy, 10 rate the stock a Hold and 3 recommend a Sell. With a return potential of 47%, the stock’s consensus target price stands at $139.02.

Lockheed Martin Corporation

Robert Stallard, an aerospace analyst with RBC Capital, reiterated an Outperform rating on shares of Lockheed Martin, with a price target of $244, after the company released its fourth-quarter earnings report, posting EPS of $3.01 on $12.9 billion in revenue, compared to Consensus estimates of $2.94 in EPS on revenue of $12.36 billion.

Stallard noted, “Revenues and operating profits were both ahead of our forecasts, with the untouched Aeronautics division posting healthy 6% YoY revenue growth, but with the margin easing to 10.2% due to the higher proportion of F-35 sales. Impairment and restructuring charges in the quarter were partially offset by a 19.8% tax rate. The company ended the year with a $100bn backlog, and a book to bill of 1.09x.”

According to TipRanks.com, analyst Robert Stallard has a yearly average return of 5.3% and a 59% success rate. Stallard has a 1.4% average return when recommending LMT, and is ranked #431 out of 3607 analysts.

As of this writing, out of the 10 analysts polled by TipRanks, four are bullish on Lockheed Martin stock a Buy, five are neutral and one is bearish. With a return potential of 8%, the stock’s consensus target price stands at $225.90.