Edison Lee, a Jefferies analyst, upgraded Apple stock to Hold from Underperform in a research note released on Tuesday, pointing to the possibility that the next earnings report could exceed expectations.
The analyst’s focus is on China, where Lee estimates iPhone sales rose by approximately 10% in the first two months of the June quarter, fueled by strategic discounts. This underpins his prediction of an 8% revenue increase for Apple overall in the quarter, surpassing the company’s guidance of low-single-digit percentage growth.
However, Lee anticipates the positive momentum may be short-lived. The robust sales in the June quarter might result in weaker demand in the subsequent September quarter, with the analyst forecasting a 6% drop in iPhone shipments compared to the same period last year.
“Sales could be at risk since there remains a lack of new features, and AI is not yet a game changer,” Lee wrote in a note to clients.
MacDailyNews Take: Lee set a new, weirdly precise, price target on Apple shares of $188.32, up from $170.62, both of which are far too low, as we expect Mr. Market, including AAPL, to experience a nice stretch following the imminent signing of the One Big Beautiful Bill Act into U.S. law which will remove a significant level of uncertainty by extending major provisions of the 2017 Tax Cuts and Jobs Act.
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I think Jefferies upgrading Apple sounds like a positive sign, especially if the company might beat earnings expectations.
This ridiculous “take” illustrates how far removed mr magastevejack is from reality. as a worldwide producer of primarily consumer goods, Apple is exposed greatly to trade wars, which again were unilaterally started by the current administration. (the latest taco with the USA sending letters instead of simple reciprocal agreement signings shows how far over their heads these imbeciles are). there is absolutely nothing in the deficit-ballooning bill good for us companies, unless you’re an oligarch hiding money in a shell company. enjoy your celebration and watch as your cost of living increases at least 15% in the remainder of the term and the unfortunate fiscal mismanagement triggers stagflation.
but hey, aint it great that you get a $200 bump in child tax credit while multimillionaire wall street traders get a $200000 tax break? investing in the open corruption of campaigns turned out to be a great investment for them. blame the other party when the credit card bill is due.
Interesting to see that 10% jump in China, but I wonder if those heavy discounts are just a temporary fix. It definitely helps the short-term earnings, but will people keep buying once the prices go back up? Competitive pressure from local brands there is no joke right now.