Apple Inc (NASDAQ:AAPL)'s muted fiscal 1Q revenue guidance is expected to be offset by the company’s strong gross margin forecast, according to BofA Securities analysts.
In an update to clients, they reiterated their ‘Neutral’ rating, while maintaining a price objective of $208, noting the positive catalysts of new product introduction and stable iPhones are offset by a potentially weaker consumer spending environment.
"We remain concerned that weakness across iPads, Macs and Wearables are a leading indicator of further weakness across the rest of the portfolio," the analysts wrote.
BofA analysts added that they remain cautious around potential market share loss to Huawei even as iPhone sales continue to be strong in China.
Meanwhile, Jefferies analysts upped their target price on Apple by 14% to $195 per share, even as the December quarter guidance, laptops, and tablets “all disappointed”.
"Many regions and countries are seeing record levels and several service line items have reached all-time highs," the analysts wrote.
They also noted that Apple management guided iPhone sales up in the December quarter, adding that “things” are working and some of the "misses" may just be noise from the company still working through post COVID supply/demand disruptions.
Shares of Apple eased 0.7% to $176.32 in midday trading on Friday but have gained 41% year to date.
Contact Sean at sean@proactiveinvestors.com