• UBS raises price target on Apple to $287 from $280, implying an upside of 7.2% from Monday’s close.
• Analyst David Vogt expects earnings to be strong despite the memory chip crunch. However, he remains neutral on shares, saying he doesn’t see much long-term upside.
• According to data from Fiscal AI, the Q2 revenue consensus estimate is $109.26 billion, and the earnings per share estimate is $1.94.

Apple, Inc. (AAPL) heads into earnings this week with momentum building, but not enough conviction. UBS slightly raised its price target but maintained a ‘Neutral’ investment rating ahead of the iPhone maker's second-quarter (Q2) results on Thursday, after markets close. It believes much of the upside may already be reflected in the stock price.

According to a CNBC report, the firm upped Apple’s price target by $7 to $287, implying a 7.22% upside potential from its last closing price, up from 4.6% previously expected.

According to data from Fiscal AI, the Q2 revenue consensus estimate is $109.26 billion, and the earnings per share estimate is $1.94.

Apple Earnings Expectation: What The Street Expects

Per the CNBC report, UBS analyst David Vogt wrote in his analysis on Monday that the company's earnings should be strong, benefiting from the rollout of personal devices like the MacBook Neo and iPhone 17, amid a shortage of memory chips driven by soaring AI demand.

Vogt praised Apple’s ability to source memory chips amid the ongoing supply chain crunch, and even raised his forecast for iPhone units to 50.3 million from 46.5 million.

“Apple’s ability to secure silicon and memory to meet iPhone demand has resulted in share gains,” said Vogt. “Supply chain strength and sustained demand/share gains for the iPhone 17 series should lift iPhone rev up ~20% YoY.”

He also noted that the company expects “solid demand” in its top markets, the U.S. and China, prompting him to raise his fiscal third-quarter revenue forecast by about 4% to $102 billion, translating into about 8.5% year-over-year growth. 

But UBS Sees Limited Upside

However, in the long run, Vogt sees limited upside in Apple, citing risks including "(1) product delays or less innovative offerings, particularly a decline in iPhone unit shipments; (2) macro weakness dampening product demand, especially in China.”

How Did Retail Traders React?

On Stocktwits, retail sentiment about AAPL turned ‘bearish’ from ‘neutral’ amid a near 170% spike in messaging volumes over the last 24 hours.

At least two users on the platform expect the stock to rise to $290 after earnings.

AAPL has underperformed the S&P 500 so far this year and over the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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