Apple could report strong growth in quarterly sales from its fiscal second quarter as some customers push up purchases as they try to avoid any tariff-related price increases.
Angela Palumbo for Barron’s:
Its financial results, scheduled for release after the stock market closes on May 1, are expected to attract plenty of interest. Apple is not only the largest company in the U.S. by market capitalization, it is among the leading tech businesses most likely to be directly hurt by President Donald Trump’s tariffs.
“Indubitably, the biggest concern surrounding the Apple story is the trade war with China. Even under the most favorable outcome, we expect Apple’s U.S. prices to increase, and manufacturing capacity to continue migrating out of China,” Monness, Crespi, Hardt analyst Brian White wrote on Thursday. He rates Apple as a Buy with a $260 price target, while shares were 0.7% higher at $205.92 on Thursday.
Even if tariffs don’t lead to Apple raising prices, the company could be hurt if consumers reduce their spending on nonessential goods as prices rise for other imported products. Shoppers seem to be buying smartphones now to get ahead of potential price increases in the future.
“While the launch of iPhone 16e helped with the demand in the quarter, we believe the outperformance is mostly driven by demand pull-in concerns over tariffs in the quarter,” Citi analyst Atif Malik wrote on Thursday. He rates Apple as a Buy with a $245 price target.
BofA Securities analyst Wamsi Mohan agrees. He wrote on Thursday that Apple could report better-than-expected second-quarter revenue as tariffs boost demand…
MacDailyNews Note: BofA Securities reiterated its “Buy” rating on Apple stock, while lowering its 12-month target price from $250 to %240.
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