Wall Street still loves Apple even if iPhone sales are falling
Most analysts are predicting that sales of Apple's iPhone will fall year-over-year for the first time. The iPhone contributes over 60% of Apple's total revenue, and is the company's most critical product. If sales of the iPhone are down, then Apple itself could be down year-over-year.
The challenge for investors is figuring out how lowered expectations for iPhone sales have already factored into Apple's stock price. After all, Apple is still expected to report massive profits this quarter as well as roughly $76 billion in revenue. But if the company's historic hot streak is ending, then investors who priced the stock based on continued growth might find their appetite for Apple is diminished.
Here's a quick roundup of what Wall Street is expecting ahead of today's earnings.
Piper Jaffray, well known for being bullish on Apple, thinks now is the time to buy the stock at a discount, setting a target price of $179.00:
Piper Jaffray also believes that Apple is poised to increase its share buy back:
J.P Morgan is "overweight" Apple, and has a "cautious" outlook for the stock given recent supply chain rumblings:
Brean Capital analysts speculate that Apple might be doing an inventory correction this quarter to set itself up for a return to growth later this year.
RBC Capital Markets gave Apple an "outperform" rating, bumping its price target to $130, advising that the stock's current price is an "attractive entry point for investors."
Analysts at Deutsche Bank worry about Apple's struggle to grow revenue, and rate the stock a hold.
Credit Suisse analysts have already factored a decrease in iPhone sales into its models, but still rates the stock "outperform" with a target price of $140.
Analysts at Co wen and Company are targeting Apple at $125: