As previously reported, Jefferies downgraded Apple (AAPL) to Underperform from Hold with a price target of $170.62, up from $167.88. The March quarter was in line with expectations and management indicated limited pull in for fiscal Q2, but guided only low-single to mid-single digit revenue growth and estimated a $900M tariff impact in the next quarter, the analyst tells investors. The firm estimates that implies 7M iPhone P/PM shipments from China, good enough for U.S. demand in the June quarter, but the product gross margin is already under pressure and the firm believes tariff impacts will expand over time to create more earnings downside.
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