Analyst Samik Chatterjee from J.P. Morgan maintained a Buy rating on Apple (AAPL – Research Report) and keeping the price target at $245.00.
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Samik Chatterjee has given his Buy rating due to a combination of factors, primarily focusing on Apple’s resilience in the face of potential challenges. He anticipates that Apple’s upcoming earnings will surpass expectations, driven by stronger-than-anticipated revenue and gross margins. This optimism is partly due to a pull-forward in demand as consumers and channels prepare for potential price increases, which is expected to bolster revenue outcomes in the near term.
Chatterjee also highlights Apple’s ability to manage cost headwinds, particularly those related to tariffs on China, by utilizing inventory built prior to these tariffs. This strategy is expected to limit cost increases and support gross margins. Despite some uncertainties in the hardware industry and potential new tariffs, Chatterjee believes that Apple’s proven track record of maintaining earnings stability during downturns will continue to attract investor confidence. Consequently, he sees limited downside risk to Apple’s financial estimates, even if there is a slowdown in demand later in the year.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $290.00 price target.
Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AAPL in relation to earlier this year.