P_Wei
Evercore removed Apple (NASDAQ:AAPL) from its tactical outperform list noting that the tech giant’s December quarter earnings report was the main catalyst for its call.
The iPhone maker reported its first quarter results on Feb. 1 which beat analysts’ estimates. However, concerns about the company’s presence in China outweighed ending a drought of four-straight quarterly sales declines.
Evercore Analyst Amit Daryanani said that China revenues had fallen 12% year-over-year; weakness in the region “was more around wearables and iPads — reflecting a weaker consumer spending environment.”
However, while Evercore understands “the disappointment around Mar-qtr (March quarter) guide we think iPhone units are largely flat,” added Daryanani.
The analyst added that there are several tailwinds stacking up in Apple’s (AAPL) favor, which range from generative AI product launches, to mixed reality headset Vision Pro’s adoption, to sustained Free cash flow, or FCF, generation/uptick to capital allocation.
Apple (AAPL) has a Hold rating at Seeking Alpha’s Quant Rating system, which consistently beats the market. The Seeking Alpha authors’ average rating is also Hold but the average Wall Street analysts’ rating is more positive with a Buy.
AAPL -0.73% to $178.35 premarket March 4