According to sales estimates derived from Apple supply chain data, the "Apple Barometer" that's perpetually monitored by Ticonderoga Securities suggests that shares of Apple remain a solid buy. On Wednesday morning, Ticonderoga Securities analyst Brian White once again stated his $612 price target for Apple stock.
Information from the overseas supply chain reveals April sales increasing 113% year over year. Although White says sales for April may - technically - be below the "historical trend," quarter-on-quarter growth could ultimately still be realized.
The “barometer” he’s compiled of companies that supply Apple out of Taiwan shows Apple sales may have fallen by 7.5%, below an historical average for sales to rise 0.4% from March to April. But given the 35% increase in sales in March for his barometer, versus a 24% average, it’s still possible that the full quarter could rise by the historical 5%, he thinks.
"The conference sends Apple shares down an average of 5.4 percent over five trading days, and Apple volatility is inexpensive,” according to Katherine Fogertey and John Marshall, equity-derivatives strategists at Goldman Sachs.
Source: Barron's, The Financial Post