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Apple (NASDAQ:AAPL) just got a fresh boost from Evercore ISI, landing on the firm's Tactical Outperform List. The call? Apple is set up to deliver a solid quarter, riding on emerging market growth and steady demand for Services and Wearables. The wildcard is Chinawhile some iPhone weakness has raised eyebrows, analysts see that as a low bar to clear. Plus, with Huawei running into chip supply issues, Apple could quietly scoop up market share. Evercore is sticking with its $250 price target, expecting gross margins to hold steady at 66%-67%.
But the real story isn't this quarterit's what's coming next. Evercore sees investors shifting focus to the iPhone 17, which is rumored to bring a major redesign. That, along with the upcoming iPhone SE launch in March, could keep demand strong heading into the back half of the year. While Apple has offered some discounts on iPhone 16 in China, overall demand looks stable, thanks to emerging markets picking up the slack.
With expectations already tempered, Apple doesn't need to blow the doors off this quarterit just needs to show resilience. A solid print, combined with anticipation for the iPhone 17 and a better-than-feared China update, could be enough to keep the stock moving higher. Investors looking for upside? The setup looks asymmetrically interesting.
This article first appeared on GuruFocus.