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Apple (NASDAQ:AAPL) fell upon reporting quarterly earnings and providing a lukewarm forecast.
Despite the somewhat negative sentiment from some on Wall Street, others are still feeling pretty good about the iPhone-maker.
Goldman Sachs: BUY
Goldman Sachs noted that Apple’s (AAPL) total device active installed base of more than 2B reached a record high across all products and geographic segments. Its iPhone installed base also grew to a new high, and Apple noted that fiscal 2023 was a record year for switchers driven by the iPhone’s success in emerging markets like India, Latin America, the Middle East, Canada and South Asia.
Apple’s (AAPL) continued focus on emerging markets should help to accelerate installed base growth, Goldman Sachs analysts led by Michael Ng wrote in a note. The company’s Services division should continue to benefit from its base expansion.
Raymond James: OUTPERFORM
Apple’s (AAPL) continued strength in the higher-margin Services segment is an encouraging sign to Raymond James’s Srini Pajjuri and Jacob Silverman.
In addition, healthy year-over-year growth projections for iPhone revenue in the current quarter imply that underlying demand is healthy.
The company’s recent announcement of new Macs should also support results.
“We expect Mac to benefit from recent product refresh, and view any contribution from Vision Pro (in 2024) as upside to our model,” Raymond James said.
WELLS FARGO: OVERWEIGHT
Wells Fargo analysts led by Aaron Rakers have several reasons it feels good about Apple (AAPL). Among them:
- Apple’s (AAPL) confidence in double-digit growth for Services revenue.
- Expectations of year-over-year growth in iPhone revenue for the current quarter, when taking into account the one fewer week.
- Record iPhone sales in mainland China for the last quarter.
- India becoming an increasingly visible growth driver.
Wells Fargo said its high rating on the stock reflects Apple’s (AAPL) competitive differentiation and overall deepening product/services portfolio will create sustainable brand loyalty, a strong balance sheet and continued expansion of its recurring paid subscriber base.
Shares of Apple (AAPL) are up around 40% year-to-date.