Apple Stock Back In Favor? iPhone Sales Surprise Prompts Analyst Upgrade, Fuels Hopes For Earnings Beat

Apple, Inc. (AAPL) stock defied the tech slump on Tuesday and extended its winning streak to three sessions. The newfound optimism toward Apple’s stock stemmed from hopes that an expedited launch of an upgraded Siri would boost iPhone sales.

Traders now have one more reason to keep the stock on an upward trajectory. Late Tuesday, Jefferies analyst Edison Lee upgraded Apple shares to ‘Hold’ from ‘Underperform,' The Fly reported. The analyst also lifted the price target for the stock to $188.32 from $170.63. 

The analyst’s optimism is based on research firm Counterpoint’s findings that iPhone sales volume in the first two months of the June quarter increased by 15% year over year (YoY), marking the strongest growth since the third quarter of 2021.

The analyst estimates that tariff-driven pull-in demand and market share recovery in China could drive approximately 8% and 10% growth in revenue and earnings per share (EPS) for the June quarter, respectively. He pointed out that this would be roughly 5% and 9% respectively, greater than the consensus, as well as Apple's low-single-digit revenue growth guidance.

Lee is of the view that a good June quarter could keep the stock stable in the near term, but he cautioned that the market’s benign view on tariffs is “likely overly optimistic” and Apple's service revenue could surprise to the downside.

Apple’s China supply-chain exposure and the Asian country’s importance from a demand perspective have rendered it among the most susceptible to Trump tariffs. The company has reportedly implemented workarounds, including shifting iPhone assembly to India, to offset the impact.

Cupertino has been reporting double-digit growth in Services revenue in recent quarters, which has cushioned the softness in the devices business.

On Stocktwits, retail sentiment toward Apple stock remained ‘bullish’ (73/100) since the report about the company discussing its use of OpenAI and Anthropic's AI technology for Siri broke out.

The message volume on the stream has remained ‘high.’

A  bullish user said they expect the stock to hit $215 very soon as it was back in favor again.

Another user flagged a “bullish” chart formation and positioned for a multi-day run.

With the three-session advance, Apple stock has cut its year-to-date losses to about 17%.

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