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Most Analysts Recommend a ‘Buy’ on Apple ahead of Q2 Earnings

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Analysts on Apple stock

According to the latest data compiled by Reuters, 52% of analysts covering Apple (AAPL) gave it a “buy” recommendation. The remaining 44% and 5% of Wall Street analysts gave “hold” and “sell” recommendations, respectively. These ratings were based on the consensus of a total of 41 analysts covering Apple as of April 23.

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Stock is trading above the target price

As of April 23, analysts’ consensus 12-month target price on Apple stock was $198.17, lower than its Tuesday closing of $207.48. In the last three months, analysts’ consensus target price on Apple has significantly gone up from $178.29 to $198.17.

During the same period, many notable analysts have upgraded their ratings on the company despite its ongoing iPhone sales troubles, especially in China. High expectations from Apple’s upcoming video streaming and news subscription services and a possibility of a medium-term iPhone sales recovery could be some of the reasons for Wall Street’s optimism about Apple. Nearly three months ago, 52% of analysts covering Apple recommended a “hold” on its stock.

In contrast, about six months ago, analysts’ consensus target price on the company’s stock was significantly higher near $238.

Ratings on Apple’s peers

Analysts’ recommendations and 12-month return potential for Apple’s peers (FXD) as of April 23, were as follows:

  • Microsoft (MSFT): 92% of analysts gave it a “buy,” and their consensus target price for MSFT reflected about 4.4% upside potential from its market price.
  • Alphabet (GOOG): 98% of analysts suggested a “buy” with a solid upside potential of about 6.6% for the next 12 months.
  • Amazon (AMZN): 96% of analysts gave it a “buy.” Its consensus target price suggested 8.6% upside potential.
  • Netflix (NFLX): 62% of analysts gave it a “buy,” and their consensus target price reflected only about 1.0% upside potential from its market price on Tuesday.
  • NVIDIA (NVDA): 63% of analysts suggested a “buy,” but its market price was already higher than analysts’ consensus target price of $186.74.
  • Qualcomm (QCOM): 68% of analysts gave it a “buy,” and their consensus target price reflected a minor 0.4% upside potential.
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