As the tech giant Apple (ticker: APPL) prepares to release its third-quarter report, all eyes are on the company’s performance amidst a challenging smartphone market. While concerns loom, analysts at Piper Sandler and Wedbush urge investors to focus on the bigger picture and remain optimistic about Apple’s potential for growth.
Apple currently faces a slowdown in smartphone sales, a challenge that plagues the entire sector. Consensus forecasts suggest that iPhone sales revenue for the June quarter will amount to $40.23 billion, a decline from the preceding quarter’s $51.33 billion.
Piper Sandler analysts have confidence in Apple’s ability to meet expectations for the June quarter. Additionally, they anticipate that Apple’s September quarter forecast will align or slightly surpass Wall Street’s consensus expectations. Harsh Kumar from Piper Sandler asserts that although concerns about a soft Chinese market persist, Apple’s position in China remains strong, and any decline in iPhone sales is likely to be minimal.
To support his stance, Kumar has raised his target price for Apple from $180 to $220, reaffirming an Overweight rating on the stock.
As of premarket trading, Apple shares have shown resilience, rising 0.2% to reach $196.16. Year-to-date, the stock has soared by an impressive 51% as of last Friday’s close.
Daniel Ives from Wedbush also echoes the sentiment that forecasts predicting a significant downturn in iPhone sales may be overly pessimistic.
With Apple’s third-quarter report just around the corner, investors must carefully evaluate the outlook and consider the potential for further growth in this ever-evolving market landscape.
