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Apple Estimates Unmoved by Product Announcements

Written by John Butters | Sep 9, 2016

Apple unveiled several new products and services at the company’s event on September 3, including iPhone 7, iPhone 7 Plus, and the Apple Watch Series 2. Given these announcements, did analysts revise their outlooks for Apple? Have there been any significant changes to EPS estimates, ratings, or target prices for the company since August 31?

The answer is no.

The Market Reacts

In terms of EPS expectations, analysts did not made any significant changes to EPS estimates for either fiscal year 2017 or fiscal year 2018 after the announcements. The mean EPS estimate for FY 2017 ($8.86) has not changed since August 31. The mean EPS estimate for FY 2018 ($9.94) also has not changed since August 31.

In terms of ratings, analysts did not make any substantial changes to their opinions after the announcements. The overall number of Buy ratings has decreased by one (to 37 from 38) since August 31. The overall number of Hold ratings has increased by one (to four from three) over this same time frame. The overall number of Sell ratings (three) did not change during this period.

In terms of target prices, analysts did not change their opinions after the announcement. The mean target price for Apple has remained at $121.81 since August 31. This mean target price is 15.4% above the September 8 closing price of $105.52.

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In terms of the market reaction, the price of the stock increased by 2.1% (to $108.36 from $106.10) leading up to the event (from August 31 to September 7). However, on the day after the event (September 8), the price of the stock fell by 2.6% (to $104.52 from $108.36).