Latest news with #EdisonLee
Yahoo
05-07-2025
- Business
- Yahoo
Apple (AAPL) Stock Upgraded to ‘Hold' by Jefferies — But Analysts Still Cautious on AI
Apple Inc. (NASDAQ:) is one of the . On July 2, Jefferies upgraded the stock to 'Hold' from underperform and raised the price target to roughly $188 per share from $171. Analyst Edison Lee highlighted Apple's 15% annual growth in sales volume in April and May as a catalyst behind the upgrade. Lee also estimated that iPhone sales grew 19% year over year during the June 18 Chinese shopping holiday. 'This is a strong sign that AAPL is determined to defend market share in China, and Chinese consumers are still willing to buy iPhone at lower prices. We believe 40m units is likely the minimum AAPL is looking to maintain in China,' the analyst wrote. 'Given the special situation in the last 3 months, we see potential upside surprise for AAPL's 3QFY25 results.' A good June quarter 'could keep the stock stable near term.' However, he further cautioned that strong June quarter sales could imply slow demand in the September quarter. 'Jun Q results could be a positive surprise, but Sep Q guidance would likely still be subdued.' 'We believe the sales could be at risk since there remains a lack of new features, and AI is not yet a game changer. We are worried about the attractiveness of 17 Slim, since 1) it has only one camera, 2) its battery capacity is likely at only 2,800 mAh, and 3) a higher selling price than 16 Plus.' Apple may also be facing long-term risks, such as a downside in revenue from the App Store, the firm noted. Apple is a technology company known for its consumer electronics, particularly the iPhones and MacBooks. While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and . Disclosure: None.
Business Insider
03-07-2025
- Business
- Business Insider
Jefferies Upgrades Apple Stock (AAPL) to Hold, But Stays Cautious as ‘AI Is Not Yet a Game Changer'
Jefferies upgraded Apple (AAPL) stock from Sell to Hold and increased the price target from $170.62 to $188.32, as top analyst Edison Lee is positive about the strength in the company's sales in the June quarter. That said, Lee remains cautious about AAPL stock, as he expects the iPhone maker to issue a subdued outlook for the September quarter. He is also worried about a lack of new features in the upcoming iPhone 17, stating that ' AI is not yet a game changer.' Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Top Analyst Upgrades AAPL Stock to Hold on Strength in June Quarter Lee cited Counterpoint data, which indicates that global iPhone sales volumes in April and May increased by 15% year-over-year, marking the strongest growth since the third quarter of 2021. The 5-star analyst believes that tariff-driven pull-in demand and share recovery in China could drive 8% and 10% growth in the June quarter (Q3 FY25) revenue and EPS, respectively, which would be nearly 5% and 9% greater than consensus estimates. Also, the June quarter top-line estimate is better than Apple's low-single-digit revenue growth guidance. The analyst estimates that iPhone sales in China grew by 19% year-over-year during the 618 promotions, driving a nearly 10% growth in the first 2.5 months of the June quarter, thanks to targeted discounts and government subsidies. China's 618 festival is one of the biggest shopping events, during which major e-commerce retailers offer discounts. Lee believes that this is a strong indication that Apple is determined to protect its market share in China, and that Chinese consumers are still willing to buy an iPhone at lower prices. Given these positives, Lee sees a possible surprise for AAPL's Q3 FY25 results. Consequently, he raised his June quarter iPhone sales volume estimate by 9% to 49.4 million. The revised estimate indicates a 9% year-over-year growth. Jefferies Remains Cautious on Apple Stock However, Lee expects only flat iPhone unit growth in the second half of calendar year 2025 due to pulled-in demand in April and May and a lack of new features for the iPhone 17. In particular, he expects demand in the September quarter to 'suffer' due to the demand pulled forward in the June quarter. The analyst reduced his iPhone units estimate for the September quarter by 11% to 46.3 million, reflecting a 6% year-over-year decline. Furthermore, Lee contends that the market's 'benign view on tariff is likely overly optimistic.' Lee sees the possibility of a roughly 7% hit to Fiscal 2025 and 2026 EPS (earnings per share), even if the U.S. imposes just a 10% tariff on India, a 20% tariff on Vietnam and a 30% tariff on China, which are rates less severe than the ones announced earlier in 2025. Lee also warned about the downside in Apple's Services revenue. Overall, Lee remains sidelined on Apple stock, as some risks persist, but believes that 'good' Q3 FY25 results could help stabilize the stock over the near term. Is Apple Stock a Buy, Sell, or Hold? Prior to Jefferies' upgrade, Wall Street assigned a Moderate Buy consensus rating to Apple stock based on 16 Buys, nine Holds, and four Sell recommendations. The average AAPL stock price target of $226.54 indicates a 9% upside potential. Apple stock is down 17% year-to-date.
Yahoo
02-07-2025
- Business
- Yahoo
Jefferies Sees Surprise iPhone Growth in Q3
Apple (NASDAQ:AAPL) upgraded to Hold as Jefferies pegs Q3 iPhone volumes at 49.4 million, a 9% gain versus prior 1% growth forecast. Jefferies analysts, led by Edison Lee, cite Counterpoint data showing a 15% YoY surge in iPhone sales during AprilMaythe strongest since 2021and a 19% lift in China during the 618 promotions. Lee attributes the upside to pull-in demand from U.S. tariffs, targeted discounts and government subsidies, and notes Apple is keen to defend at least 40 million China units even at lower prices. Looking ahead, Jefferies sees a cooling in 2H CY25. It trimmed its Sep Q iPhone forecast by 11% to 46.3 million units, down 6% YoY, as iPhone 17 production holds flat and buyers await meaningful feature upgrades. The note also flagged risks to services revenue growtha key margin driverif hardware momentum fades. Why It Matters: The upgrade underscores that targeted promotions can spur unexpected iPhone volume gains, but the long-term outlook hinges on fresh features and AI-driven services expansion. This article first appeared on GuruFocus.
Yahoo
02-07-2025
- Business
- Yahoo
Apple (AAPL) Rises After Jefferies 'Upgrade' on 15% iPhone Sales Surge
July 2 - Apple (NASDAQ:AAPL) was upgraded to 'Hold' from Underperform by Jefferies, as the bank sees potential upside in third?quarter iPhone sales. Shares climbed about 1% in early trading on Wednesday after the upgrade. Jefferies analysts, led by Edison Lee, pointed to data from Counterpoint Research showing a 15% year?on?year increase in global iPhone volumes during April and May, the strongest growth since 2021. They noted 12.5% growth in the March quarter, driven in part by Chinese demand pulled forward through discounting. We estimate iPhone sales in China rose about 19% year?over?year during the June promotions, driving roughly 10% growth in the quarter, Lee wrote, adding that Apple appears determined to defend market share with targeted discounts and government subsidies. On that basis, Jefferies lifted its Q3 forecast to 49.4 million units, implying 9% growth versus its prior 1% outlook. However, the firm cut its September quarter projection by 11% to 46.3 million units, down 6% year?on?year, citing a lack of new features and the absence of AI as a game changer. Apple's fiscal third?quarter results, covering April 1 to June 30, are due around July 31, with analysts forecasting revenue of $88.67 billion and earnings per share of $1.42. Investors will be watching for any upside surprises in iPhone growth to sustain momentum. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-07-2025
- Business
- Yahoo
One Apple Bear Just Threw in the Towel With This Upgrade. Is It Time to Buy AAPL Stock?
Apple (AAPL) stock has been a notable laggard in 2025, with the shares down approximately 16% year-to-date - significantly underperforming its Magnificent 7 tech peers amid concerns over iPhone sales and perceived artificial intelligence (AI) development delays. Today, though, Jefferies analysts led by Edison Lee upgraded AAPL to 'Hold' from 'Underperform,' based on expectations for a 'potential upside surprise' in third-quarter iPhone sales growth. However, while the brokerage firm raised its Q3 iPhone sales forecast to 49.4 million units, the analysts simultaneously cut forecasts for Apple's crucial September quarter by 11% to 46.3 million. Microsoft Stock Is Headed for $4 Trillion. Is It Too Late to Buy MSFT Here? Is UnitedHealth Stock a Buy, Sell, or Hold for July 2025? Is Palantir Stock a Buy at New Record Highs? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! AAPL stock is trading slightly higher this morning after closing Tuesday at a 6-week high, just above its upper Bollinger Band. Recent gains have been primarily driven by reports that Apple is considering partnerships with Anthropic or OpenAI to enhance Siri's capabilities, which would represent a significant strategic pivot from Apple's traditional in-house development approach. Apple's core business faces multiple headwinds, with reports today suggesting its efforts to diversify manufacturing efforts to India have encountered resistance from Beijing, with hundreds of Chinese engineers being recalled from iPhone factories. At the same time, production forecasts for the iPhone 17 are tracking approximately 9% below iPhone 16 levels, raising concerns about future growth prospects. Additionally, the implementation of new tariffs could potentially impact earnings by 7%, though Apple has committed to significant U.S. investment of $500 billion over four years. Despite these challenges, Apple's Services segment continues to demonstrate robust growth, boasting over 1 billion paid subscribers and achieving 11.6% year-over-year revenue growth to $26.65 billion in the latest quarter. However, this success coincides with increasing regulatory scrutiny, as evidenced by a federal judge's recent decision to allow an antitrust lawsuit targeting Apple's "walled garden" ecosystem to proceed. The company's high-margin revenue streams from Services could face pressure from regulatory interventions, particularly regarding App Store practices and its lucrative Google (GOOG) (GOOGL) search deal. The market's response to Apple's evolving AI strategy and its ability to navigate manufacturing challenges will likely determine near-term performance. Looking ahead, Apple's success will largely depend on its ability to execute its AI integration plans, maintain iPhone sales momentum, and effectively manage ongoing regulatory and trade policy challenges while sustaining its ecosystem advantages. The stock is rated a 'Moderate Buy' on Wall Street, but AAPL's premium valuation (at 29 times forward adjusted earnings) suggests there's no real discount to be had at current levels, despite the recent underperformance. While AAPL investors likely have no cause for immediate concern, there doesn't seem to be an immediate catalyst to buy shares at these levels, either. This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor had a position in: AAPL. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
