UBS: Multi-Fineline Electronics’ results bode well for Apple

“UBS Securities’s Maynard Um this morning reflects on the positive implications for Apple (AAPL) of the fiscal Q1 pre-announcement last night by Multi-Fineline Electronics (MFLX),” Tiernan Ray reports for Barron’s.
“Multi-Fineline yesterday said after the close that it expects to report Q1 revenue of $239 million for the three months ended in December, better than the company’s forecast of $200 million to $230 million offered back in early November,” Ray reports. “Um, who has a Buy rating on shares of Apple, writes that that could be good news for Apple’s iPhone and iPad.”

MFLX saw weakness last quarter (meaning the prior quarter) partly from a later iPhone 4S launch, so strong results and a better than seasonal outlook for next quarter may indicate underlying demand strength for iPhone/iPad (MFLX likely with more iPhone exposure). – Maynard Um, UBS Securities

Ray reports, “Um expects Apple had “its best holiday quarter in history.” He maintains a $510 price target on the stock.”

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