On Friday, Barclays (LON:BARC) made an adjustment to the price target on shares of Apple Inc (NASDAQ:AAPL), increasing it from $158.00 to $164.00, while maintaining an Underweight rating on the stock. The adjustment follows the company's recent financial report and guidance for the upcoming quarter, which aligned with market expectations.
The tech giant's performance, as per the recent March-quarter results and the June-quarter forecast, has shown consistency with analyst forecasts, marking a steadier period compared to the turbulent financial landscape of the past year. Despite this, concerns remain regarding Apple's future growth prospects.
Barclays highlighted several factors that contribute to a cautious outlook on Apple's stock. The firm's analysis indicates that Apple might experience a stagnation in revenue growth, projecting an average of flat revenues over a two-year span. This outlook is influenced by a combination of factors including Apple's diminishing market share in China, potential regulatory challenges facing its Services segment, and expectations for an unremarkable product cycle for the upcoming iPhone 16.
The analyst's commentary underscores these apprehensions, noting, "March-Q print and Jun-Q guide were both in-line with expectations, which are better than what we have seen happening over the last year. We are still worried about the lack of growth (our model shows two years averaging flat revenues), share loss in China, regulatory risk for Services and an uneventful IP16 cycle coming."
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