Apple’s Price Target Lowered at Oppenheimer

Oppenheimer analysts lowered their price target on Apple Inc. (NASDAQ:AAPL) to $170 from $190 given the later-than-expected iPhone production capacity recovery in China, as well as loss of iPhone demand in Q2 due to supply constraints during the holidays.

The analysts lowered their fiscal 2023 EPS estimate from $6.46 to $6.12. They now expect 76 million iPhones to be sold in Q1, down from their prior estimate of 82.5 million. They also reduced their fiscal 2023 Software & Service sales growth outlook from 13% to 6%.

While taking an incrementally more negative near-term view on Q1 product and service sales and iPhone demand into Q2, the analysts mentioned that their long-term bullish view of the company is unchanged. The analysts expect Apple to remain well positioned to take share across hardware and online services, driven by its superior user experience, product quality, and performance.