Apple is kicking off a big week: It reports first quarter earnings after the bell Monday, and is expected to unveil a touch-screen tablet device on Wednesday that will rival Amazon.com’s Kindle. Mike Abramsky, managing director at RBC Capital Markets, discussed his outlook for the company.
“We do expect [Apple] to beat the Street on the quarter because they did have a very strong quarter," Abramsky told CNBC.
"But they will probably guide below the Street, which is typical conservatism for them. While that’s normal in this kind of market, it may not be good enough to drive the stock higher given the large run it's had.”
Abramsky has an “outperform” rating on Apple and a $275 a share price target.
“Apple has a number of very big drivers ahead of it," he said. "[It] still has all kinds of growth driving it and is able to sustain margins in this kind of environment, and we think that’s why the stock is going to go higher."
"But in the near-term, there may be a pullback," he cautioned.
Abramsky also added that the smartphone market is continuing to expand and the share gains on the computing side will also continue to grow.
“Apple is surfing those waves very successfully and we don’t expect that to abate this year,” he said.
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Abramsky does not own shares of Apple.
RBC makes a market in securities of Apple. Firm also has received compensation for non-investment banking services.