Apple surpassed Wall Street's forecasts, reporting $119.58 billion in revenue for Q1 2024, with iPhone revenue showing improvement year-over-year after a downturn in 2023. Despite this, ongoing market challenges have left investors wary.
Piper Sandler, in a note covered by AppleInsider, has issued a neutral rating on Apple, also lowering its price target from $205 to $190. The firm is adopting a cautious stance, waiting for clearer signs of growth in handset sales. Nonetheless, it acknowledges Apple's robust brand presence, buoyed by the launch of Apple Vision Pro, exceptional services performance, and resilient iPhone sales that have overcome challenges, particularly from the Chinese market.
During the earnings call, Apple projected growth for Q2 2024 to mirror that of Q2 2023, with expectations for iPhone revenue to remain steady on a year-over-year basis.
Following these developments, Piper Sandler adjusted its financial forecasts for Apple, now expecting an EPS of $6.51 with total revenue at $386.9 billion for 2024, a downward revision from its previous prediction of an EPS of $6.69 on $400.7 billion in revenue. The firm's outlook for 2025 has also been tempered, projecting an EPS of $6.91 on revenues of $409.6 billion, reduced from an anticipated EPS of $7.28 on $425.6 billion in revenue.
In summary, while acknowledging Apple's enduring brand strength and recent successes, Piper Sandler remains neutral with a revised price target of $190, citing a need for a clearer path to growth in handset sales amidst persistent market headwinds.
