By Senad Karaahmetovic
Barclays analysts reiterated an Equal Weight rating on Apple (NASDAQ:AAPL) stock.
The analysts weighed in on the latest Apple supplier tracker data, which suggests March performance was below seasonal, therefore offsetting strong January.
"Taiwan March monthly supplier revenue came in 22% below seasonal, led by weakness at Hon Hai and TSM, which cited conservative customer order pull-in, offsetting Wistron and Pegatron strength. We expect in-line March-Q hardware revenue with much better January monthly revenue offsetting a weaker February/March," the analysts said in a client note.
Similarly, stable iPhone sales should help offset weaker Macs, iPads, and Wearables. The analysts project that the tech giant shipped 54 million iPhone units in the March quarter.
The analysts also warned about the guidance for the June quarter.
"As we look out to June-Q, we estimate a mid-single-digit miss to Street hardware estimates as we think June should see a decline for revenues on a Y/Y basis, also echoing commentary from Hon Hai. Our current June Q estimate is 460bps below consensus," they concluded.
Barclays' price target of $145 per share implies a downside risk of ~12%.