Apple’s inventory took a minor confidence hit at present, as JPMorgan lowered its value goal, although the agency stored its general score intact.
The adjustment comes as analyst Samik Chatterjee and his staff dial again expectations for Apple’s medium-term income and earnings, citing weakening demand drivers tied to the upcoming iPhone 17 cycle. Listed here are the main points.
A 4.17% discount, however with no change in score
Chatterjee minimize his 12-month value goal for AAPL from $240 to $230, citing weaker iPhone 17 expectations, ongoing macroeconomic headwinds, and a slower-than-expected path for Apple’s AI technique to ship significant returns.
Nonetheless, the general inventory score was stored at “Chubby”, which suggests the agency stays optimistic about Apple’s longer-term roadmap.
Right here’s Chatterjee:
“Our extra bearish view in relation to the quantity outlook for iPhone 17 sequence is along with our unchanged expectations for a stronger cycle in iPhone 18 sequence with the launch of a foldable smartphone in addition to additional progress in relation to AI options which were lengthy awaited and delayed. (…) We forecast iPhone 18 sequence to see a stronger quantity cycle, led by extra materials adjustments within the merchandise together with the launch of a foldable cellphone in addition to broader AI-related options.”
As reported by Invertor’s Enterprise Every day, the observe additionally pointed to a modest pullback in client urge for food for upgrades this fall, as purchases earlier this yr (spurred by anticipated tariff hikes) seemingly pulled demand ahead.
That dynamic tracks with different current forecasts, together with a current Counterpoint report pointing to early improve habits linked to the pricing uncertainty within the peak of the US-China commerce tensions.
Lastly, the analysts nonetheless anticipate near-term outcomes to carry up, thanks partially to subsidies in China. However in the end, JPMorgan now sees slower progress in fiscal 2026, with stronger upside solely kicking in by 2027, when Apple’s AI investments are anticipated to start out contributing meaningfully to its backside line.
Apple’s inventory closed at present at $201, barely down at -0.28%.
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