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.
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.