On Friday, Evercore ISI reiterated its Outperform rating and $250.00 price target on Apple stock (current market cap: $3.43 trillion), highlighting the company's potential for an in-line quarter bolstered by growth in emerging markets, as well as strong performance in its Services and Wearables segments.
According to InvestingPro analysis, Apple is currently trading above its Fair Value, though the stock generally trades with low price volatility. The firm anticipates a "stronger for longer" iPhone cycle that could surpass typical seasonal growth, although it acknowledges that the situation in China is a variable that could impact results.
Evercore ISI's commentary suggested that concerns about iPhone sales might lower expectations, which could benefit Apple if it guides lower than anticipated. Despite iPhone discounts in China, the firm expects overall demand to remain steady, especially with the emerging market tailwinds. The September 2024 flat year-over-year revenue in China was seen as a positive sign, reinforcing the belief that Apple can maintain its market share even with increased competition from Huawei.
The report also mentioned Huawei's difficulties in procuring enough chips for its smartphones, a situation that could advantage Apple. Evercore ISI expects Apple's gross margins to align with the December 2024 quarter guidance of 66-67% and to continue into the March 2025 quarter.
Looking ahead, the analyst noted the potential investor excitement over the rumored new form factor of the upcoming iPhone 17 and the expected unveiling of a new SE model in March, which may lead to higher estimates for the June quarter. With Apple's next earnings report due on January 30, 2025, investors will be watching closely. The firm remains positive on Apple's outlook, citing the strength of the Services segment and the anticipation of continued iPhone sales improvements throughout the fiscal year. For deeper insights into Apple's financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of over 30+ key metrics and expert insights.
In other recent news, Apple Inc (NASDAQ:AAPL). has been featured prominently in various events and developments. The company's CEO, Tim Cook, has confirmed his attendance at the inauguration of President-elect Donald Trump, joining a list of tech industry leaders who are also expected to be present. In a separate development, Apple's credit card partnership with Goldman Sachs may be terminated early, as indicated by Goldman CEO David Solomon, although no specific reason was given.
Apple also gained the most share in the fourth quarter of 2024 according to preliminary PC shipments data from IDC, with a significant 17.3% year-over-year increase in units shipped. This growth pushed Apple's global market share to 10.1%. Furthermore, Bernstein tech analyst Toni Sacconaghi, Jr., who closely monitored tech stocks including Apple, announced his retirement plans.
Finally, Fairlead Strategies provided a technical analysis update for Apple, indicating that the company's stock is hovering near cloud-based support at approximately $232. If it falls further, secondary support is identified at its 200-day moving average near $216.
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