Apple Inc (NASDAQ:AAPL) is set to report its second quarter earnings on May 1. Morgan Stanley analysts recommend that investors to buy the dip after the earnings release.
The tech giant is expected to meet expectations in the second quarter, but analyst Katy Huberty said that estimates should be lowered for the following quarter, according to a note reported on by TheFly.com.
The company’s capital return announcement will likely accompany its second quarter report, spurring a “sell the news” event, according to Huberty.
The analyst lowered the June quarter estimated iPhone shipments to 34 million from 40.5 million.
READ: Apple will probably post 'in-line numbers' in 2Q on lukewarm demand, analyst says
The Morgan Stanley analyst maintained her overweight rating, slightly lowering the price target to US$200 from US$203.
Canaccord analyst T. Michael Walkley said in a note reported on by TheFly.com that a survey he conducted pointed to slow iPhone sales. However, he said that Apple’s market share will continue to grow and that iPhone owners are not abandoning Apple for Android.
Walkley also stated the company may be clearing its inventory to make way for three new models being introduced in September.
The Canaccord analyst reiterated a buy rating with the same price target of US$200.
Apple’s iPhone outlook in China has weakened as well, according to OTR Global, after checking in with Asian wireless carriers, service providers, and other telecommunications-related businesses. Apple’s shares rating was lowered to mixed from positive.
Shares of Apple were down slightly in Friday pre-market trading.