Apple (AAPL) Stock Upgraded to ‘Hold’ by Jefferies — But Analysts Still Cautious on AI

Apple Inc. (NASDAQ:AAPL) is one of the 10 Trending AI Stocks on News and RatingsOn 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.”

Apple (AAPL) Stock Upgraded to ‘Hold’ by Jefferies — But Analysts Still Cautious on AI

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.

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