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Piper Sandler Foresees Tough March for Apple, But Remains Neutral

iPhone 15 Pro

Despite strong earnings for the first quarter of 2024, Piper Sandler believes that the iPhone will experience continued headwinds. leading to a drop in sales. difficult March quarter.

Apple beat Wall Street's expectations with revenue of $119.58 billion for the first quarter of 2024. Even iPhone revenue rose year-over-year after a decline in 2023, but headwinds in the market continue to worry investors.

In a note published by AppleInsider, investment firm Piper Sandler set a neutral rating for Apple. He also lowered his price target to $190 from $205.

Piper Sandler says she's staying on the sidelines and waiting for a cleaner environment for mobile phone growth. Otherwise, the Apple brand remains strong with the launch of Apple Vision Pro, outstanding service performance, and reasonably good iPhone sales that are beating headwinds from China.

In the earnings call, Apple signaled that it expects similar growth in the second quarter of 2024, similar to the growth in the second quarter of 2023. iPhone revenue is also expected to be similar compared to last year.

However, Piper Sandler revised down its estimates, moving to earnings per share of $6.51 on revenue of $386.9 billion in 2024. That misses estimated earnings per share of $6.69 by $400.7 billion.

2025 estimates also include deductions. The firm estimates earnings per share of $6.91 on revenue of $409.6 billion, compared to EPS of $7.28 on revenue of $425.6 billion.

Piper Sandler rates Apple neutral and has a price target of 190 US dollars.

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