Goldman Sachs analysts adjust Apple stock price target ahead of first-quarter earnings
Apple shares edged lower in early trading on Thursday, extending a trend that has put the world’s second-largest technology stock into correction territory after Goldman Sachs analysts lowered their price targets ahead of its December quarter earnings report later next week.
apple (AAPL) The company’s shares have fallen about 13.6% since its Boxing Day peak, wiping more than $600 billion in market value and ceding its status as the world’s largest company to Nvidia. (NVDA) people are worried about the impact of weak iPhone demand and the launch of Apple Intelligence AI.
Fierce competition for smartphone sales in China, Apple’s main market, has also put pressure on the group, with data last week showing local rivals Huawei and Vivo split their share of the overall phone market in the world’s second-largest economy last year. occupy the first and second positions.
The International Data Corporation (IDC) released a closely watched global mobile phone sales report earlier this month, saying Apple’s fourth-quarter shipments fell 4.1% from the same period a year earlier to about 76.9 million units.
However, Apple remains the world’s largest smartphone seller, with an estimated global market share of 18.7%, just ahead of Samsung’s 18% share, according to IDC data.
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Goldman Sachs analyst Michael Ng said his forecast for Apple iPhone shipments in the three months to December, the group’s first fiscal quarter, was broadly in line with IDC data, but noted that the forecast Will “increase by more than 5% annually.” [average selling price] grow.
Apple services revenue in focus
Ng expects iPhone sales to grow 1% year-on-year (to US$69.7 billion), and the group’s overall revenue to grow slightly less than 4%, to US$124.2 billion.
Ng said: “Service growth should continue to grow at a double-digit compound rate, with App Store spending expected to grow 15% and provide ample room for further adoption of Apple services.”
However, in a report released on Thursday, Ng lowered his price target by $6 to $280 per share, maintaining his support for Apple even though the stock is facing its worst monthly performance since December 2022. A “buy” rating for the stock.
“While competition in China’s smartphone market has intensified, we are encouraged by the potential for iPhone to accelerate growth in China. [the next fiscal year] Driven by new product innovations in iPhone 17/18 and Apple Intelligence continuing to introduce more powerful feature sets to new markets,” said Ng
RELATED: Analysts revisit Apple stock price targets ahead of first-quarter earnings update
“We expect sentiment to improve mid-year, a seasonally strong period for the stock, as concerns about Apple Intelligence’s limited impact on iPhone demand and competition in China are replaced by optimism about new Apple Intelligence features announced at WWDC In 2025, new Mac, iPad and iPhone SE products will be launched in the spring of 2025, and iPhone 17/18 may launch new features in the fall of 2025/26.
Apple’s correction plunge ‘goes too far’
In a separate report released late Wednesday, Wedbush analyst Dan Ives also weighed in on Apple’s recent plunge, saying the “panic and short-selling frenzy” surrounding the stock was “too much.”
Ives, who reiterated his $325 price target on Apple stock ahead of next week’s earnings release, said the launch of Apple Intelligence would be “the beginning of a massive growth renaissance for Apple, and as we see about 20% of the world’s population, the bull case Still intact” artificial intelligence will finally be accessible through Apple devices in the coming years. “
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“Apple Intelligence is the foundation on which developers build hundreds of apps, which will drive billions in incremental service growth to Cupertino in the coming years,” Ives said.
He added: “What Apple bears are still missing is its golden installed base of 1.5 billion iPhones and 2.3 billion iOS devices, which is unparalleled and will create a new AI-driven growth story that Wall Street Not included in stock price considerations.
Apple shares fell 0.55% in pre-market trading, opening at $222.61 per share.
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