Barclays Remains Bullish On Apple Following Q1 Print, Raises Q2 Guidance

Ben Reitzes of Barclays on Thursday commented in a note that Apple Inc.'s (NASDAQ: AAPL) quarterly results, guidance and cash flow were “very positive” and that the company can continue its momentum moving forward.

“We are impressed by the gross margin performance into 2015, given a volatile currency environment,” Reitzes wrote. “Looking forward we see the Apple Watch as a potential catalyst into the 2015 year-end holidays with prospects for increased cash returns a more immediate catalyst in April.”

Looking forward to the second quarter, Reitzes raises his earnings per share estimates to $2.04 from $1.97, while hiking his revenue guidance to $54 billion from a prior $53 billion. For the full year fiscal 2015 the analyst now sees Apple earning $8.56 per share, up from prior estimates of $7.76, while revenue is expected to be $225 billion as opposed to prior estimates of $215 billion.

Shares are Overweight rated with a $150 price target.