Category Archives: oud
Apple Price Target Cut On Lengthening iPhone Replacement Times
Apple ( AAPL ) iPhone owners aren’t upgrading to new handsets as quickly as they have in the past, a situation that is limiting upside for Apple stock. BTIG analyst Walter Piecyk on Thursday lowered his price target on Apple stock to 130 from 141 but maintained his buy rating. Apple stock was down nearly 1.5%, near 109.50, in midday trading on the stock market today . Piecyk cut his estimates for Apple iPhone sales in fiscal 2016 and 2017 based on “a more conservative outlook for the upgrade cycle of existing users.” He also reduced his revenue expectations for the Apple Watch, given the recent price cuts to the device. He does not expect higher volumes to offset Apple Watch price cuts. “We have broader concerns that there is a structural change underway in the pace of (iPhone) upgrades,” Piecyk said in a report. “It will take a few quarters and the launch of the next iPhone to confirm if end users are, in fact, holding onto their phones longer.” Apple also is facing a resurgent Samsung, which is seeing brisk sales of its new flagship Galaxy S7 smartphones , he said. Apple’s latest smartphone, the low-cost 4-inch iPhone SE, is seeing stock-outs and shipping delays, signs of strong demand, AppleInsider reported Wednesday. The iPhone SE, which starts at $399, went on sale March 31. Image provided by Shutterstock .
Valeant Creditors Give Company More Time Before Default; Stock Up
Shares of Valeant Pharmaceuticals International ( VRX ) rose sharply for the third day in a row Thursday, after the company came to an agreement with its creditors to avoid a default. Valeant said lenders had agreed to an amendment extending the filing deadline for its 10-K annual financial report to May 31, and its 10-Q for Q1 to July 31. Previously, both were due at the end of March, though the agreement gave Valeant 30 days after that to file to prevent a default. The amendment also waives the cross-default to Valeant’s indentures, which was set off when the company failed to file its 10-K by March 15. Valeant is late in its filing because of a review of its financial records that it started after a scandal erupted last fall surrounding its relationship with now-defunct pharmacy Philidor. On Tuesday, the company said the review was complete , so it expects to file the 10-K this month. The new agreement gives it a bit more breathing room. Valeant said the amendment also will affect its M&A capabilities. “The terms of the amendment will restrict the company’s ability to make certain acquisitions and other investments and to pay dividends and other restricted payments until the financial statements are filed and the company achieves certain leverage ratios,” Valeant’s statement said. “While these restrictions are in place, the company will also be required to apply substantially all net asset sale proceeds to prepay its term loans.” Valeant has become highly levered through a series of acquisitions that have quickly bulked up the company, but the management put acquisitions on hold after the Philidor scandal broke. No asset sales have been announced, though Wall Street has been speculating that the company will be slimmed down or even broken up. On Wednesday, several analysts and reporters asked Allergan ( AGN ) CEO Brenton Saunders if Allergan might acquire Bausch & Lomb , a business that Valeant bought in 2013 back when Saunders was running it. Valeant stock was up almost 6% in late morning trading on the stock market today , near 36. The stock has risen about 30% this week despite hitting a five-year low on Monday, as investors have been heartened by the completion of the financial review as well as promises of a new CEO in the near future.