Apple (NASDAQ: AAPL) is currently experiencing a decline in revenue and hardware sales, which has contributed to its post-earnings losing streak.
Despite this short-term setback, stock market analysts on Wall Street remain optimistic, with a target price above $200 projected for the next 12 months.
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The average analyst target price indicates a potential gain of 16%
Analyst consensus at TipRanks currently suggests a ‘moderate buy’ rating for Apple, with an average target price of $208 for the next 12 months, representing a 16% increase from the current price of $178 per share.
Following the Q2 earnings report, some analysts expressed skepticism. D.A. Davidson analysts have lowered their target price on Apple stock to $180 from $185 while maintaining a neutral rating.
Brandon Nispel from KeyBanc stated concerns about the U.S. upgrade cycle potentially slowing down, with upgrade rates at record lows and the possibility of weak Americas revenue.
However, Nispel still maintains an overweight rating on Apple stock, with a target price of $200.
The majority of other analysts have reaffirmed their ‘buy’ or ‘overweight’ ratings this month, with target prices ranging from $167 to $235.
Analyzing the technical aspects of AAPL stock
After reaching a significant resistance point of around $200, the stock price of AAPL broke out of its upward trend.
Currently, it is trading close to the 100-day simple moving average and hovering around the support level of $175.
If the $175 level remains intact, there is a possibility that the price might make another attempt to reach $200. However, if the support level is breached, the next significant level to monitor would be $155.
Apple has generated a remarkable return of 42% for investors year to date, surpassing the S&P 500’s return of 17%.
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