Shares of Apple Inc (NASDAQ:AAPL) are on pace to open about 2% lower after the company’s fiscal first-quarter results missed on earnings and revenue — but that hasn’t stopped analysts at Wedbush from upping its price target for the company.
The firm issued an Outperform rating and increased its price target to $180 from $175. Shares of Apple traded at $148.28 shortly before the opening bell.
Despite the expectations misses due to supply chain issues and other headwinds, “when peeling away the onion, the underlying growth story at Cupertino is holding up much firmer than the Street had feared in this economic uncertain backdrop,” analysts wrote.
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“Cook cited an accelerating China coming out of the lockdowns which is a tailwind for Cupertino in the next few quarters,” the firm added. “Importantly, no major layoffs are planned for Apple which is a stark contrast to other tech giants and speaks to the tactician hiring by Cook & Co over the past few years.”
Wedbush also acknowledged the difference in opinion around the company’s future.
‘This print and guide will cause an Old Western standoff between the bulls and the bears,” analysts said. “The bulls (our camp) will cite a stable iPhone growth story, jaw dropping GM guide, growing dervices business, and an accelerating China post lockdowns in a softer macro. The bears will cite a soft guide, macro uncertainty, and a valuation which they find head-scratching.”
“We would be buyers of this unique tech stalwart and believe Cupertino is a Rock of Gibraltar tech stock in a stormy macro.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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