Bernstein Reiterates Outperform on Apple Citing Memory Cost Concerns

Bernstein SocGen Group has reiterated an Outperform rating on Apple Inc. () with a price target of $370.00, citing concerns about rising memory costs and their impact on gross margins in the December quarter.

The firm's analysis points to downside risk for Apple's gross margin and earnings per share, though stronger international pricing provides a partial offset.

According to Bernstein's estimates, Apple's blended iPhone gross margin would be 39.6% and its global pricing analysis suggests 40.4%, both significantly lower than consensus expectations of 48.7% and 46.2%, respectively.

The firm's updated model reflects a $2.87 EPS estimate for the December quarter, which is 2% below consensus estimates.