Oppenheimer Lowers PT On AAPL To $420

Oppenheimer is lowering its price target from $450 to $420 on Apple Inc. AAPL as the company may face some in September, according to Oppenheimer's projections. Says Oppenheimer, in the report, “We remain positive on Apple's long-term fundamentals, but see some risk to our Sept. iPhone projections. Apple's yet to comment on its next iPhone launch—we've been modeling a full month of new iPhone sales in Sept. and now believe it's more prudent to model a late-Sept./Oct. launch. This suggests possible modest QoQ growth trends in Sept. and not the strong growth we previously modeled. And while good iPad demand is a positive, a heaver mix of iPads means margin pressure. We're cutting our iPhone/margin estimates accordingly. While Investors' recent behavior suggests they increasingly expect a Sept. gap, we believe there's more downside risk if Sept.-quarter guidance confirms this. Reducing PT to $420.” An Outperform rating is maintained on the stock. AAPL closed at $315.32 yesterday.