UBS Keeps Neutral on Apple, $296 Price Target

UBS analyst David Vogt reiterated a Neutral rating and $296 price target on Apple (NASDAQ: AAPL).

“Our analysis of App Store data (Source: Sensor Tower) indicates that revenue in the month of September grew 5% YoY, resulting in growth in the Sept26 quarter of ~2% or ~1% FX neutral (FXN).

While better than the flattish growth it was tracking at QTD, the Sept-26 quarter marks the second consecutive quarter of low-single digit App Store growth despite a ~270 bps easier comp.

By geography: Global: App Store was up ~2% YoY in the Sept-26 quarter on a reported basis, down ~150 bps from the June-26 quarter, off a ~270 bps easier comp.

US: App Store was down ~7% YoY in the Sept-26 quarter on a reported basis, down ~170 bps from the June-26 quarter, off a similar comp.

ROW: App Store was up ~7% YoY in the Sept-26 quarter on a reported basis, down ~150 bps from the June-26 quarter, off a ~440 bps easier comp.”

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