Six Apple analysts rate first-quarter performance, iPhone sales: ‘A big step in the right direction’, ‘some good news and some bad news’ – Apple (NASDAQ:AAPL)

technology giant Apple (NASDAQ:AAPL) reported first-quarter results on Thursday, with revenue and earnings per share exceeding expectations.

Let’s take a look at what analysts think about this report and what’s next.

apple analyst: goldman sachs Analyst michael ng The investment decision was “buy” and the target price was raised from $223 to $232.
key bank capital market Analyst Brandon Nispel There was a sector weight rating, but no price target.
piper sandler Analyst Harsh V. Kumar The rating was “neutral,” and the price target was lowered from $205 to $190.
oppenheimer Analyst Martin Yang The stock had an outperform rating and a $200 price target.
wedbush Analyst Daniel Ives The stock had an outperform rating and a $250 price target.
needham Analyst laura martin The investment decision was “buy” and the target price was $220.

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Apple’s Goldman Sachs: Apple’s highlights in the first quarter were iPhone, gross profit, and services for Ng.

“iPhone outperformed in the quarter with record upgrades, despite mainland China iPhone sales down MSD% (mid-single digits) year-over-year and increased competition in the region.” he said.

The analyst noted that the iPhone 15 is “resonating with consumers,” which could bode well for the iPhone 16.

Ng also emphasized that Apple is investing in generative AI efforts, and the company plans to share further efforts on that front later this year.

KeyBanc Capital Markets on Apple: Nispel said Apple stock could remain “range bound” for some time given its expensive valuation and limited growth.

“I think expectations need to be lowered again,” Nispel said. “Both the Americas and China sectors are underperforming expectations as investors focus on the US upgrade rate and competition from China, and we do not expect this to change anytime soon.”

The analyst said the main topics in the earnings release were low upgrade rates in the U.S. and increased competition in China.

“Our model predicts little growth in 2024, and AAPL is within range given the challenges the Americas sector will face given low U.S. upgrade rates and competition from China. We think it is likely that the performance will be on par with the Nasdaq at best.” ”

Piper Sandler talks about Apple: Kumar said the tech giant reported a “very clean” quarter.

“However, given the tough year-on-year comparisons, the situation in the next March quarter is likely to be even tougher,” Kumar said. “We continue to believe that the fundamentals remain strong as the brand continues to grow with the launch of Vision Pro.”

The analyst said iPhone headwinds in China were offset by strong performance elsewhere in the world. The service sector was also an area of ​​“standout” for Kumar.

“AAPL has done a great job of expanding profitability and we expect margins to rise again in the March quarter.”

The analyst said the all-time record installed base of 2.2 billion products shows brand loyalty.

“For now, we are sitting on the sidelines and looking for a cleaner mobile growth environment.”

Mr. Oppenheimer talks about Apple: First-quarter results exceeded expectations in several sectors, Yang said.

The outlook for the second quarter and the slowdown in China’s economy were negative for analysts.

“Great China’s 13% revenue decline is more severe than expected and will be a further concern over the remainder of 2024,” Yang said.

The analyst sees long-term growth potential for Apple and emphasizes the company’s “unshakable market position.”

“Overall, Apple provided solid results and guidance against a very challenging macro environment.”

Apple’s Wedbush: According to Ives, the company’s first quarter results were strong, beating the iPhone.

“Apple delivered some good and bad news today with Cupertino totally beating the Street and focusing on the Street,” Ives said. “Weak China numbers and ‘very conservative’ March guidance will weigh on stocks slightly.”

The analyst said China “remains in a difficult situation.” Usually, the China region accounted for about 20% of iPhone sales, but in the first quarter it was 17%.

“It’s no secret that Apple is struggling to battle Huawei and geopolitical headwinds in the short term.”

Ives said this is not the first time Apple has faced headwinds in China, and likely won’t be the last.

“The quarter was a big step in the right direction, but it was neutralized by the soft readings in March.”

Needham about Apple: After the first quarter earnings report, Martin wondered where the revenue growth and generative AI discussion was.

The analyst noted that big tech companies like Alphabet, Amazon, and Metaplatforms have mentioned AI and generative AI dozens of times in their recently prepared earnings call statements, while Apple’s CEO pointed out. tim cook I used the word 0 times in my prepared remarks.

“We believe companies that leverage GenAI to reduce costs and accelerate new product launches will replace those that don’t,” Martin said. “Which one is AAPL?”

The analyst said that in the current environment of generative AI, Apple’s product upgrades “feel like slow motion.”

AAPL price action: Apple shares on Friday fell 0.15% to $186.58, compared with a 52-week trading range of $143.90 to $199.62.

Read next: Apple Vision Pro is ‘amazing’, says CEO Tim Cook: “We live in a 3D world, but the content we enjoy is flat.”

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