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Apple (NASDAQ:AAPL) is facing ominous headwinds, according to Monness, Crespi, Hardt. Bank of America disagrees, however.
The tech giant, set to report first-quarter results on November 2, is facing tougher regulatory conditions and risks collateral damage from geopolitical issues, Monness, Crespi, Hardt said.
“The combination of a downtrodden economy plagued by pernicious inflation, an emboldened Huawei, a new iPhone family with only incremental updates, and the maturity of the smartphone market, paint a bleak picture for iPhone trends,” analyst Brian White penned in an investor note.
He called the iPhone 15 cycle “uninspiring,” though he does have a Buy rating on the stock with a $208 price target.
Bank of America has the same price target on Apple (AAPL) though it rates the stock Neutral.
The firm sees revenue and earnings per share estimates as having bottomed out.
“We do not expect further major negative revisions barring a major recession,” analysts led by Wamsi Mohan wrote. The bank reiterated its Neutral rating saying that the positives of Apple’s (AAPL) September product launch were offset by weaker consumer demand trends.
The bank said that recent datapoints indicate the availability of iPhone 15 series has improved significantly and “data thus far suggests a marginally stronger cycle so far for iPhone 15 vs. iPhone 14.”
Bank of America sees Licensing, Subscriptions and App store remaining the main contributors to Apple’s Services revenue, modeling an increase of 12% year-over-year for the September quarter.
Shares of Apple (AAPL) are up 38% year-to-date.
