Apple Stock is up after the income statement. Here's what Wall Street thinks.


The shares rose early on Wednesday's trading, as investors were pleased with the company's latest quarterly earnings, increased dividend and resumed buy-back program.

Apple shares (ticker: AAPL) were recently 5.5% to $ 211.68. On Tuesday night, the company reported fiscal quarterly earnings that beat analysts' forecasts. Revenue fell last year, even though it also exceeded expectations.

Service revenue increased by 16%. Jon Swartz covered the report for Barron's and noted that the Apple stock rose in the aftermarket trading Tuesday.

Read more: The Apple file increases because the shift to services seems to work

"Our quarterly results show the continued strength of our installed base of over 1[ads1].4 billion active units when we put all -time record for Services, and the strong momentum in the Wearables, Home and Accessories category, CEO Tim Cook said in a statement.

Here is an overview of comments from analysts published since the company reported its financial results, listed from the highest price target at the lowest, FactSet's average price target is around $ 210, near current prices.

Morgan Stanley
Katy Huberty has an overweight rating on Apple stock, along with a $ 240 price tag that was increased by $ 6.

"Apple is a structurally different company today than it was just 5 years ago, with a bigger cash balance and a Services activities that account for 18% of revenue and 30% of gross profit, "she wrote. "As the unit revenue slows, Services will take the baton, drive more sustainable and more profitable growth that helps boost stocks higher."

• On Wedbush, Daniel Ives has an Outperform rating and a $ 235 pricing target on Apple shares.

"The omnipotent service sector remains a prerequisite for the company's appreciation," Ives wrote. "On a stand-alone basis, we believe this segment is worth between $ 400 billion and $ 450 billion, and is still in the early days of being fully recognized."

Samik Chatterjee scored an Overweight rating on Apple's shares, increasing his price target by $ 5 to $ 235.

"With fiscal third quarter guidance indicating that Apple is balancing price and volume to maximize revenue potential and likely to return to annual sales in Turnover after just two-quarters of the year-over-year, we reduce expects significant improvement in investor's feelings, "Chatterjee wrote.

• Wamsi Mohan, at the Bank of America Merrill Lynch, maintained his Buying Class while increasing his Apple target price by $ 10 to $ 230. "on many models, Mohan wrote. "We believe that consumers do not realize the residual value of their iPhones, and the filing program replaces carrier subsidies following the introduction of higher priced iPhones."

• Piper Jaffray's Michael Olson maintained an overweight rating on Apple and increased his price target to $ 230 from $ 201.

"We expect limited tension around this year's iPhone launches," he wrote. . "However, we believe that as long as service revenue continues to exceed expectations, this will allow investors to expect 5G iPhones to start building."

• Jim Suva, at Citi Research, has a Buy Class and a $ 220 prize on Apple's stock.

"Apple trades at [a] 10-20% off the market and has a 2% dividend and a $ 75 billion authorized stock purchase repurchase that all create valuation support," Suva wrote. "As services grow, with gross margins in the 60% range, compared to hardware in the 30% range, one can argue that Apple's cash flow and valuation could expand in the future."

• Credit Suisse analyst Matthew Cabral has a Neutral rating and a $ 209 pricing target at Apple.

"While we acknowledge the potential of the shift to Services, we do not think it is enough to move estimates more meaningfully over the near-to-medium term, so the upside for the stock is more dependent on several rates higher," he wrote.

• At Macquarie Research, Benjamin Schachter confirmed a neutral rating and a $ 190 pricing target. he. "Our concerns about the core drivers with high margin Service growth remain (App Store, Licensing, Apple Care, and others are still good businesses, but growth slows down), but if the iPhone and China worry, the stock will respond positively."

• Aaron Rakers covers Apple for Wells Fargo, where he has a market weight rating; He increased his price target to $ 215 from $ 190. in Apple's service center "he wrote.

• Bernstein analyst Toni Sacconaghi has a marketing rating and a $ 190 price on Apple's stock.

"We continue to see risk rewards on Apple as relatively neutral," he wrote. "Apple's valuation has already returned to its peak from last year, and this cycle's temporary price reductions will not solve the basic issue of longer iPhone replacement."

• Andrew Uerkwitz at Oppenheimer has a Perform rating on Apple Store.

"By answering questions about improvement in emerging markets, management said that purchases (considered by consumers as subsidies) and installment payments worked very well," he wrote. "It seems that Apple has learned a lot about price elasticity in China, which makes us wonder how new iPhones will be priced this fall against a year ago."

• At Raymond James, Chris Caso has a Market Perform rating on Apple stock.

"We're still concerned about estimates throughout the 2019/20 cycle, as we believe a lack of compelling products will adversely affect the mix, pushing average sales prices and margins," Caso wrote.

• Jeffrey Kvaal, on the Nomura Instinet, has a neutral rating on the shares. He increased his price target by $ 10 to $ 180.

"Although many components of the services work well like Apple Music, Apple Pay, Apple Care, shooting services, and search advertising, their two-digit growth is unlikely to outweigh the weaker App Store and license sales and more importantly, gross profits, "wrote Kvaal.

Erwan Rambourg has a reduction class and a price of $ 180 on the shares.

"Apple's third-quarter guidance looks soothing when it comes to sales," he wrote. "From a cost / margin perspective, this guide is not so solid."

Email David Marino-Nachison at Follow him on @marinonachison and follow Barron's Next on @barronsnext .

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