Apple facing ‘tough setup’ for upcoming earnings, says JPMorgan

JPMorgan analyst Samik Chatterjee lowered the firm’s price target on Apple to $180 from $190 and keeps an Overweight rating on the shares, telling investors that he sees the company facing "a tough setup" for its upcoming earnings report given that supply headwinds faced though the December quarter are now leading and extending into demand concerns for the March quarter. Chatterjee expects to see moderating momentum in the demand drivers for Apple’s hardware as signs emerge of product cycle tailwinds beginning to fade and the analyst expects revenue and earnings in fiscal Q1 to track modestly below consensus expectations. His target cut reflects both lower estimates as well as more bearish sentiment relative to the demand outlook, Chatterjee noted.