Apple Stock Posts Moderate Gains On Analysts’ Mixed Outlook: Retail Turns Markedly Bullish

Apple, Inc.'s (AAPL) stock rallied in early Thursday trading as it strives to break out of its recent lackluster phase, sending retail sentiment soaring.

The stock has been under pressure ever since it hit an all-time high in late December, as analysts predicted weak December quarter results citing sagging iPhone demand. Out of the 29 analysts rating the stock, four have ‘Sell’ recommendations, according to TipRanks data. 

Following a flurry of price target reductions, Apple stock has the smallest upside potential among the Magnificent Seven companies — a group of seven high-profile mega-cap tech names. The consensus price target of $242.07 leaves scope for merely a 7.3% upside.

The tech giant recently ceded its position as the most valued global company to Nvidia amid the recent stock weakness.

On Thursday, the stock reacted to mixed catalysts.

Wedbush analyst Daniel Ives assuaged investor concerns by stating that “the panic and bear frenzy around Apple is way overdone heading into December earnings.”

The analyst, who has an ‘Outperform’ rating and Street-high price target of $325 for Apple stock, said his China channel checks suggested year-over-year (YoY) iPhone unit declines in the region. But strong growth elsewhere and solid Services business performance will help the company hit the December quarter targets, he said.

Ives sees only a short-lived weakness. The analyst is upbeat about a China recovery once Apple announces its artificial intelligence (AI) partner in China in the coming months, facilitating the rollout of the Apple Intelligence features.

Morgan Stanley’s Erik Woodring offered a mixed commentary. In his preview note of December quarter results, due Jan. 30, the analyst said he expects an in-line quarter. But he sees the company guiding the March quarter down due to muted iPhone demand and forex headwinds. 

“With $210-220 the likely stock floor, we are hesitant to call earnings a ‘clearing event’ and see more important catalysts in March/April,” the analyst said.

In a late Wednesday report, Goldman Sachs analyst Michael Ng reduced the price target for Apple to $280 from $286 but maintained a ‘Buy’ rating. The analyst predicts merely 1% YoY iPhone revenue growth. 

However, Ng sees iPhone unit growth accelerating in fiscal 2026 due to product innovation with the upcoming models and the worldwide availability of the Apple Intelligence features.

On Stocktwits, sentiment toward Apple stock improved to ‘extremely bullish’ (81/100) from ‘bullish’ a day ago. Message volume was at ‘high’ levels.

AAPL sentiment and message volume January 23, 2025, as of 11:26 am ET | Source: Stocktwits

An Apple watcher on the platform threw their behind the stock mainly due to its oversold nature.

Another said that form them to go long, the stock should sustainably break above the $225.50 level.

The stock traded up 0.50% at $224.94 in late-morning trading, with the upside accompanied by below-average volume.

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