Apple earnings estimates reduced at Needham

Needham keeps a Buy rating and $220 price target on Apple but cuts the firm’s EPS view for Q2 by 10c to $1.51 and for FY24 by 15c to $6.40. The revisions reflect lower iPhone sales and weakness in China, though these are offset in part by slightly higher revenue than previously expected for iPads and Macs, the analyst tells investors in a research note. Apple’s anemic or negative growth outlook, along with expected cost increases to fund GenAI, are the biggest gating factors preventing new investors from buying the stock, Needham added.