Apple Inc (NASDAQ:AAPL, ETR:APC) has come under pressure ahead of its Thursday, 30 January results, but this may be “overdone”, according to Wedbush analysts.
Though Chinese demand for iPhones in particular looks weak, analysts noted a manageable decline in the region and higher sales elsewhere should see it hit forecasts.
“We have been here many times on Apple's stock over the last decade with the noise/bears piling on.
“But that creates the opportunity to own this tech stalwart poised to enter its next phase of growth in 2025 in our view.”
Shares have dropped 8.2% to US$223.83 since the turn of the year, driven by speculation around weakness in China and resultant analyst downgrades.
However, Wedbush predicted 2025 would bring a “massive growth renaissance at Apple” with its phased rollout of artificial intelligence features that were ultimately set to stretch to 20% of the world’s population in the coming years.
“Apple Intelligence is the foundation that developers will build hundreds of apps around and that will translate into billions of incremental services growth for Cupertino.
“What the bears continue to miss on Apple is its golden installed base of 1.5 billion iPhones and 2.3 billion iOS devices is unmatched.”
An ‘outperform’ rating and US$325 share price target were reiterated.