RBC: Apple Now Worth Just $130, We're Lowering March And June Estimates

In a new report, RBC Capital Markets analyst Amit Daryanani explains why RBC has dialed back its expectations for Apple Inc. (NASDAQ: AAPL) in 2016.

“We are lowering estimates on AAPL for March and June quarters to reflect supply chain data points coupled with the reality that compares will be challenging in the near term,” Daryanani writes.

RBC has reduced its March quarter iPhone units estimate from 54 million to 45 million. RBC is calling for March quarter revenues of $50.0 billion on EPS of $2.07 versus consensus estimates of $58.5 billion and $2.37, respectively.

Related Link: Gabelli & Co's Top Technology, Media And Telecom Stocks For 2016

Overall, RBC remains bullish on Apple in the long-term and still believes the stock will be driven by higher iPhone and iPad Pro prices, a potential 4” iPhone refresh, higher gross margins and liberal buybacks.

RBC maintains its Outperform rating on Apple but reduced its price target from $140 to $130.

Disclosure: the author holds no position in the stocks mentioned.