Shares of Apple (NASDAQ:AAPL) jumped today, which can be attributed to yesterday’s earnings report and today’s analyst praise. As fears of a recession grow, American consumers might be hesitant to buy iPhones, but customers in China and India are still keen on upgrading their devices. This puts Apple in a strong position, even as the broader economic outlook seems gloomy.
Apple’s second-quarter earnings exceeded expectations, largely thanks to iPhone sales. Analysts at KeyBanc Capital Markets spotlighted the surge in China and emerging markets as a key reason to stay positive, despite the not-so-great U.S. sales numbers.
While China is Apple’s current shining star, analysts hope that India will follow suit. After opening its first Indian stores this year, Apple is planning to dive deeper into a market that’s mostly dominated by Chinese brands. D.A. Davidson analyst Tom Forte thinks Apple will use a strategy similar to what they did in China, and boosted his target price on Apple to $193 from $173 while maintaining a Buy rating on the stock.
Overall, AAPL stock has a Strong Buy consensus rating based on 24 Buys, three Holds, and one Sell assigned in the past three months. However, its average price target of $181.51 implies limited upside potential from these levels.