Apple stock: Analyst upgrades to be bought ahead of Q2 earnings
Prior to the announcement of the second quarter financial results, Bernstein analysts said $Apple (AAPL.US)$ The rating was raised from “buy” to “hold.” Since iPhone sales are slowing down against the backdrop of a difficult situation in China, which is the largest market, Apple stocks are underperforming other companies in the same industry and the market as a whole.
China's current weakness is not structural but rather a business cycle, and I believe there are no serious long-term concerns. Furthermore, the analyst pointed out that since Apple's customer base is still sensitive to product functions, Apple's business in China has historically shown high variability. It is thought that the replacement cycle and tailwind due to new AI functions will support sales of the iPhone 16.
Apple to announce second quarter results
Apple will announce its second quarter results on Thursday, May 2. Wall Street anticipates that Apple's earnings and earnings will be hit in the short term due to sluggish hardware sales.
Analysts expect the company's sales to drop 4.7% from the previous year. Furthermore, Wall Street predicts that Apple will report a profit of $1.5 per share, which is disadvantageous compared to EPS of $1.52 in the same period last year.
Is Apple buying, holding, or selling?
Apple's stock price has fallen about 10% since the beginning of the year. In contrast, $Microsoft (MSFT.US)$ with $Alphabet-C (GOOG.US)$ They rose by about 7% and 19%, respectively, over the same period. As for the future, Wall Street analysts are cautious yet optimistic about the outlook for AAPL due to the fact that hardware sales continue to be sluggish, legal headwinds, slow progress in AI, etc.
Apple stock has received 18 buys, 11 holds, and 2 selling recommendations as a “medium buy” consensus evaluation. The average target share price is $200.37, which suggests there is a possibility of a 15.49% increase from current levels.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
