Rating
Sell
Price target
$245
Previous
$253
Implied downside
-27%

Barclays analyst Tim Long lowered the price target on Apple (NASDAQ: AAPL) to $245 (from $253) while maintaining an Underweight rating.

“AAPL 3FQ26 results were mixed as revenue came in at $109.42bn, beating our estimates of $108.05Bn.

However, Services revenue and Greater China came in below expectations.

Services revenue missed our expectations at $30.74Bn vs our estimates of $31.18Bn and Greater China missed expectations after having strong results the prior two quarters, coming in at $18.82Bn vs Street consensus of $19.58Bn.

Softness in mobile gaming in the App Store (link-out transactions pressured top line) was called out as part of the Services deceleration.

Recall, we have previously mentioned concerns around AAPL’s App Store monetization efforts, and regulatory issues (like the one that impact the link-out transactions) could be starting to flow through the model more meaningfully. iPhone beat expectations at $54.25Bn vs. our estimates of $52.8Bn.

While gross margin beat our expectations at 50.1% (vs. our estimates of 48.0%), the beat was driven by a benefit from the tariff refunds.

As mentioned above, the company saw supply constraints in the June-Q impacting primarily Mac and to a lesser extent iPhone and iPad, with the constraints primarily with the advanced nodes.

EPS beat expectations at $2.02 vs. our expectations of $1.87, but EPS included a $0.11 EPS benefit from tariff refunds.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.

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