Tech giant Apple (NASDAQ:AAPL) dipped in trading on Friday as it revealed insights into its crucial December quarter, signaling a fifth consecutive quarter of declining sales growth. The dip in the stock was even as the company delivered better-than-expected results in the Fiscal fourth quarter.
Several Wall Street firms adjusted their estimates, with some noting “noise” from the Cupertino giant. The company’s CFO, Luca Maestri stated on its earnings call that while iPhone revenue is expected to grow year-over-year, overall company revenue is predicted to remain “similar to last year.” This is likely to fall short of analysts’ expectations of a growth of 5%.
The company expects that Mac sales will tick higher from the September quarter but there could be a drop in sales of iPad and wearables.
Following the earnings, top-rated Wedbush analyst Daniel Ives reiterated a Buy and a price target of $240 on the stock, implying an upside potential of 37.2% at current levels. The analyst stated that despite the “headline noise” and guidance, there was much to cheer about with the positive outlook for iPhone growth, rising margins, and robust services performance.
However, top-rated Citi analyst Atif Malik lowered his price target to $230 from $240 as he lowered earnings estimates for FY24 and FY25 by 2% and 4%, respectively, due to estimates of lower sales for the iPad and Macs. The analyst kept a Buy rating on the stock.
Is AAPL a Good Buy?
Analysts are cautiously optimistic about AAPL stock with a Moderate Buy consensus rating based on 22 Buys and nine Holds. The average AAPL price target of $202.13 implies an upside potential of 15.8% at current levels.
