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March 4 - Apple Inc. (AAPL, Financial) delivered strong Q1 2025 financials on January 30, with both earnings per share and revenue surpassing consensus estimates. However, the tech giant's stock has not rallied, remaining under pressure amid concerns over lagging iPhone sales in the critical Chinese market.
While accessing the Apple position, Wall Street analysts are now revising their outlook. UBS researcher David Vogt reiterated his Neutral rating on Apple, maintaining a price target of $236. This target implies a 1.66% downside from current trading levels near $240.50, reflecting cautious sentiment despite robust quarterly results.
According to data from technology market research firm Counterpoint, Overall, iPhone sales were up 3% year-over-year in January. However, According to sell-through figures, sales in China fell by more than 2%, as U.S. sales declined by 5% and 2.5%, respectively, compared to broader market declines. Following these subdued numbers and continuing trade/tariff threats, Apple has had to reassess its growth prospects.
The market watchers are divided as investors balance strong fundamentals against weaker demand in important markets. Analysts also advise close monitoring of consumer trends with the adjusted price target offered in a cautious approach as Apple heads into its next product cycle.
This article first appeared on GuruFocus.