Macquarie slashes Apple price target on slowing Services

Analyst Benjamin Schachter sees tough compares ahead. The Street, not so much.

From a note to clients snagged by MarketWatch:

“Unfortunately, right as investors are becoming more interested in services as a meaningful part of the story, we think it is now about to slow,” he wrote. Schachter sees slowdowns for licensing, the App Store, and AppleCare, which he said represent the three biggest drivers of category growth over the past three years. He wrote that smaller businesses including Apple Music, iCloud, and Apple Pay are not big enough to counter and pick up the slack to maintain current growth rates.

Maintains Outperform rating, lowers price target to $188 from $222. 

My take: Waiting for the note. Meanwhile, what slowing growth? There may be tougher compares ahead, but the consensus of 16 analysts at Visible Alpha is for healthy Services growth—22.6% this quarter and more than 20% the next. Not seeing the interactive chart below? Click here.

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