Crispr Therapeutics shares tumble after significant earnings miss
On Tuesday, TD Cowen analysts maintained their Buy rating and $250.00 price target for Apple Inc. (NASDAQ:AAPL), which currently commands a market capitalization of $3.59 trillion. The firm anticipates Apple to release its December quarter revenue with a 4% year-over-year increase and to provide guidance for the March 2025 quarter with mid-single-digit percentage growth. According to InvestingPro data, analyst targets for Apple range from $183 to $325, with the stock currently trading at elevated multiples compared to historical averages. Despite a challenging macroeconomic environment expected in the first half of 2025, the analysts suggest that a richer average selling price mix and stable margins could help balance these headwinds. With Apple maintaining a robust gross profit margin of 46.2% and strong return on assets of 26.1%, InvestingPro analysis indicates the company’s overall financial health remains GOOD, supported by 13 consecutive years of dividend payments.
The analysts at TD Cowen highlighted the potential impact of low-cost AI models on the 2025 calendar year, with device upgrades being a significant topic of discussion. They expect the market focus on advanced AI models, such as Apple’s AFM LLM, to drive AI application innovation and potentially spur mobile device upgrades. The firm also projects a 12% year-over-year increase in Apple’s Services revenue for the fourth calendar quarter, while acknowledging that regulatory risks could pose challenges in 2025.
Apple’s stock sentiment has seen some fluctuations during the recent holiday period due to various factors. The company experienced iPhone market share losses in China, negative adjustments to build estimates, and a perceived lack of AI-driven upgrades in the current product cycle. However, TD Cowen suggests that advancements in the AI ecosystem, particularly through efficient models like DeepSeek, could lead to increased device upgrades from which Apple might benefit.
Furthermore, the analysts noted that while regulatory risks for Apple’s Services business are on the rise, the direction of new U.S. administration policies could influence the implementation of any new regulations. In summing up their expectations, TD Cowen predicts that Apple will report December quarter results that align with current consensus estimates and will offer guidance for the March 2025 quarter that meets market expectations. With earnings scheduled in just 2 days and revenue forecast to grow 6% in FY2025, investors seeking detailed analysis can access the comprehensive Pro Research Report, along with over 14 key financial tips and metrics, available exclusively on InvestingPro.
In other recent news, Apple Inc. has been the focus of several analyst adjustments and the launch of a new AI technology from Chinese startup, DeepSeek. Citi maintained a Buy rating for Apple with a target price of $255, despite reducing its iPhone unit forecast for the March quarter by 2 million units. JPMorgan also revised its iPhone Electronic Manufacturing Services (EMS) build plan estimates for the first half of 2025, citing increased production orders and improving demand in China.
BofA Securities and Goldman Sachs revised their price targets for Apple while Jefferies and Loop Capital downgraded the tech giant over concerns about its earnings and revenue guidance targets. Analysts predict Apple’s quarter revenue to reach $126 billion, slightly above the consensus estimate of $124 billion.
Meanwhile, the AI assistant developed by DeepSeek topped Apple’s iPhone download charts, indicating a potential shift in the AI industry. Furthermore, Apple and Alphabet (NASDAQ:GOOGL) Inc. are under investigation by the United Kingdom (TADAWUL:4280)’s Competition and Markets Authority due to concerns over their mobile market dominance. These are recent developments that investors should monitor closely.
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