Should you buy Apple shares after blowout Q3 results? This analyst thinks so
- Peter Najarian explains why he bought more shares of Apple after Q3 results.
- Kourtney Gibson of Loop Capital Markets raised her price target on Apple.
- Shares of the tech titan opened about 1.5% down on Wednesday morning.
Apple Inc (NASDAQ: AAPL) reported another blowout quarter last night, but the stock doesn’t seem to care so far. Shares of the company opened about 1.5% down on Wednesday, leaving investors wondering if it’s the calm before the surge?
Peter Najarian’s comments on CNBC’s “Halftime Report”
According to MarketRebellion.com co-founder Peter Najarian, now would be the time for investors to add to their long positions in AAPL or hop onto the stock because the fundamentals are in Apple’s favour. On CNBC’s “Halftime Report”, he said:
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“The growth we are seeing in Apple isn’t the kind of growth that you normally see in these ‘very mature’ companies. A mega-cap technology company that is still posting about 36% of growth in revenue, that’s extraordinary. How about the fact that their margins are strong in all categories?”
Najarian acknowledged that the multiple is a bit stretched but was confident that it was more than offset by the exceptional growth. The stock, he added, should have rallied, but it moved south, making up for a perfect opportunity to buy more shares.
Kourtney Gibson raises her price target on Apple
During the same interview on CNBC, Kourtney Gibson of Loop Capital Markets echoed the same as she disclosed having raised her price target on Apple after the earnings report.
“I think Apple will again see tremendous growth in the September quarter. You talk about the super cycle with the new iPhone 13 coming out, you talk about 5g, you talk about wearables – we could keep going down the list. Apple has put so many irons in the fire to help move the company forward.”
Apple’s profit nearly doubled in its latest reported quarter as it topped estimates for iPhone sales by more than $5.0 billion. At the time of writing, the $2.41 trillion company has a price to earnings ratio of 28.28.