Tag Archives: apple

Apple Stock Could Struggle Until Second Half Of 2016

With iPhone production data continuing to show weakness, Apple ( AAPL ) stock isn’t likely to perk up until the second half of the year, Mizuho Securities analyst Abhey Lamba said in a report Monday. Mizuho’s Japan team on Monday lowered its iPhone production forecast after checking with various component suppliers. It now expects iPhone unit production to fall 30% year over year in the first half of the year, followed by a 9% increase in the second half. “Supply chain data points could start inflecting in (the second half of calendar 2016), helping the stock perform,” Lamba said in a report. The ramp up of the supply chain would be timed with the production of the iPhone 7, expected to launch in September. Lamba reiterated his buy rating on Apple stock with a price target of 120. Apple was up fractionally in early-afternoon trading near 94 on the stock market today . “We continue to think Apple is undervalued at the current level as investors are likely extrapolating supply chain information indefinitely while the macro environment is not helping,” he said. “However, we expect the stock to work in (the second half of calendar 2016) as data points from the supply chain start to inflect upwards.” The biggest question facing Apple this year is whether the iPhone 7 can jump-start handset sales growth, which has stalled with the iPhone 6S. Mizuho’s survey data indicate that people are holding onto their iPhones for longer periods before replacing them. “Our survey indicated elongation of life of iPhones from about 20 months to about 27 months, but we think it is tough to expect average life of phones to go beyond 2.5 to 3 years,” Lamba said. “Apple still has a significant installed base on pre-iPhone 6 versions and many iPhone 6 users will likely be ready for normal upgrades by 2016-end. We have modest growth assumptions for iPhone 7 over iPhone 6S cycle, while we agree that success of iPhone 6 cycle will be tough to repeat.” RELATED: Morgan Stanley Says Apple Stock Ripe For Picking .  

Marvell Catches Activist Starboard Investment; Upgraded To Buy

Beleaguered Marvell Technology Group ( MRVL ) stock pocketed a major upgrade Monday on activist investor Starboard Value’s nearly 7% stake in the Bermuda-based chipmaker. Marvell stock flew almost 7% on Feb. 3, the day Starboard’s investment was announced. Starboard has built its investment since December, B. Riley analyst Craig Ellis wrote in a research report. Ellis upgraded Marvell stock to buy from a sell rating. Yet, in the stock market today , shares were down 1.5%, trading near 8.80. Starboard’s 6.7% stake in Marvell “casts significant doubt on our ‘sell’ rating which was predicated on financial inquiry completion risks and post-review financial execution concerns,” Ellis wrote. In October, Marvell revealed an accounting error may have shifted 7%-8% of sales to Q2, rather than Q3. Marvell’s PricewaterhouseCoopers auditor resigned amid the probe. The resulting internal investigation questioned senior management’s operating style. The SEC and U.S. Attorney’s Office joined the investigation in December. Marvell noted it’s “common for governmental agencies to open investigations in these circumstances.” Starboard’s investment isn’t a panacea, but could come with several Marvell board seats, “a tier-1 auditor and marque CFO,” Ellis wrote. Starboard also was an investor in TriQuint before it became Apple ( AAPL ) supplier  Qorvo ( QRVO ) and Integrated Device Technology ( IDTI ). “We believe (Starboard) knows semiconductors well, with a record of agitating for increased shareholder interest,” he wrote. Starboard consultants include Tessera Technologies ( TSRA ) Chairman Rick Hill, Viavi Solutions ( VIAV ) CEO Oleg Khaykin and former Integrated Devices interim CEO Jeff McCreary. It’s also possible Starboard could help Marvell wrangle R&D capabilities, Ellis wrote. “Past checks show undisciplined and at times ineffectual field sales and engineering,” he wrote. At least two analysts rate Marvell stock a sell, and 21 others rate the stock as a hold. Ellis is among at least five analysts to rate Marvell stock a buy. Ellis boosted his price target on Marvell stock to 12 from 7.