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Apple (AAPL): ‘Barometer’ of Suppliers Points a Record July Performance, Top Analyst Maintains Buy on the Stock


Monness analyst Brian White today reiterates a Buy rating on shares of Apple (NASDAQ:AAPL) with a $275 price target, writing that sales in the month of July for a collection of electronics companies he calls the “Apple Monitor” — because some substantial portion of their business is supplying Apple — were much better than historical seasonality.

White noted, “July sales for our Apple Monitor rose by 21% MoM, much better than the average July performance of up 10% over the past thirteen years. In fact, this was the best July on record for our Apple Monitor. Given Apple has historically introduced its latest iPhone innovations in September, we believe this year’s ramp has already shown up in the supply chain. This September, Apple is expected to introduce three iPhone models with 5.8-inch, 6.1-inch and a 6.5-inch screen sizes.”

“Despite Apple achieving the $1 trillion milestone last week, we continue to believe Apple remains one of the most underappreciated stocks in the world with a valuation that remains depressed (13.7x our CY:19 EPS estimate, ex-cash). Now, Apple is heading into the seasonally strongest time of the year with a new iPhone cycle on the horizon,” the analyst concluded.

People often ask, is it worth listening to this analyst? In this case, the answer is clearly yes. White is one of Apple’s biggest bulls, and he is also one of the top analysts on Wall Street, according to TipRanks.com.

White has a yearly average return of 18.2% and a 69% success rate. Moreoever, White has a 20.1% average return when recommending AAPL, and is ranked #77 out of 4850 analysts.

Cautious optimism circles this tech giant, as TipRanks analytics exhibit AAPL as a Buy. Out of 28 analysts polled in the last 3 months, 16 are bullish on Apple stock, while 12 remain sidelined. With a slight upside potential, the stock’s consensus target price stands at $212.81.

As of this writing, Apple shares are down nearly 0.5% to trade at $207.18.