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On Thursday, UBS analysts maintained a Neutral rating on Apple stock (NASDAQ: NASDAQ:AAPL) and reiterated a price target of $210, above the current trading price of $202.46. The decision follows an analysis of Apple’s App Store performance, which showed May revenue growth of approximately 13% year-over-year on a reported basis, according to data from Sensor Tower. This marks an increase from April’s 12% growth, despite a more challenging comparison. According to InvestingPro, 21 analysts have recently revised their earnings expectations downward for the upcoming period.
The analysts noted that on a foreign exchange neutral basis, the year-over-year growth in May was about 12%, with currency providing a slight boost. Looking ahead, the App Store is expected to face more challenging comparisons, with anticipated growth of around 13% in June, 12% in July, 14% in August, and 15% in September. As a result, UBS analysts do not foresee a significant acceleration in Apple’s ’Services’ segment for the final two quarters of the fiscal year. The company’s overall revenue growth stands at 4.91% over the last twelve months, based on InvestingPro data.
Regionally, the App Store’s performance varied. In the United States, the App Store’s revenue grew almost 10% year-over-year in May, an increase from April’s 8%, despite a similar 20% comparison. In the rest of the world, the App Store saw nearly 15% year-over-year growth, approximately 80 basis points higher than the previous month, against a tougher 430 basis point comparison.
Quarter-to-date, UBS estimates the App Store is tracking at around 12% growth, a slowdown from the 15% growth observed over the past two quarters. On a foreign exchange neutral basis, the quarter-to-date growth is estimated at 11%.
In other recent news, Apple has been the focus of several analyst updates and strategic developments. Morgan Stanley (NYSE:MS) maintained an Overweight rating with a $235 price target, citing a 10% year-over-year growth in the U.S. App Store revenue for May, surpassing previous forecasts. Needham, however, downgraded Apple from a Buy to a Hold, expressing concerns over the company’s valuation and competitive pressures, noting that Apple’s forward P/E ratio for 2026 is considered high. Evercore ISI reiterated an Outperform rating with a $250 price target, highlighting expectations for Apple’s Worldwide Developers Conference, including new AI capabilities and a centralized gaming app. TD Cowen analysts maintained a Buy rating with a $275 price target, optimistic about Apple’s potential in generative AI and its impact on the smartphone industry. Meanwhile, JPMorgan reiterated an Overweight rating with a $240 price target, anticipating incremental AI-related announcements at the upcoming conference. These developments reflect a range of analyst perspectives on Apple’s strategic positioning and financial outlook.
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