Apple's 'bad news' wasn't as bad as expected. Here's what Wall Street is saying about the iPhone giant's earnings.

Price target: $149

Rating: Neutral

"AAPL was more or less in line with our expectations overall," Benjamin Schachter told clients Wednesday.

"Guidance wasn't as bad as we had feared and mgmt. sounded upbeat and confident. They also highlighted that there will be 'exciting announcements later this year' which we take to confirm a video subscription is coming soon-ish. We remain focused on Services and that did (and we expect will continue to) slow."

Price target: $153

Rating: Market perform

"There were no major surprises with December-quarter results given the negative preannouncement earlier this month," analyst Tim Long said. "Management did not provide details surrounding units/ASPs across products, but did provide gross margin for products and services."

He added: "Services margin was a focus, and came in largely in line with consensus speculation. The company also provided guidance for the March quarter that was below our and Street expectations across the board. We are lowering our estimates, and remain Market Perform as we see no catalyst on the horizon."

Price target: $187

Rating: Overweight

"Many investors feared a more significant guide down was coming for March quarter revenue and with the 'bad news,' which turned out not as bad as expected, out of the way, some that had been sidelined will likely re-visit the stock," senior research analyst Michael Olson wrote.

Price target: $170

Rating: Buy

"With the change by Apple to focus on services in its reporting segments and no longer providing unit data we answer, Is Apple a services company? No," analyst Jim Suva said. "Apple is an IT Hardware product company with great services which are attached to Apple products. Without Apple products its services struggle to exist."

He added: "Yes the focus by Apple on services may help its valuation over time, but we note even if Apple services were to grow over 50% the next few years it would still represent less than 25% of the company’s total sales. So the near-term debate is the investor set up and expectations."

Price target: $160

Rating: Market perform

"While we consider Apple's incremental installed base and services disclosures / expansion to be a positive, we maintain a Market Perform rating as we think Apple’s challenges in China will persist," Aaron Rakers told clients.