July 7 – Apple (NASDAQ:AAPL) stock climbed about 1% last Friday after Jefferies lifted its rating to “Hold”, but some traders are sounding the alarm, saying upside may be limited amid doubts over Apple’s AI roadmap. Dan Nathan of RiskReversal Advisors points out that the company has yet to lay out a clear plan for integrating artificial intelligence across its product line.
Trader Karen Finerman ranks Apple lowest among the so?called Magnificent Seven tech giants, even below bellying?up peers like Alphabet and Amazon, reflecting broader unease about execution.
Investors will get another data point on July 31, when Apple reports Q3 earnings.
With the stock trading at a premium valuation, roughly 29 times forward earnings, and AI competition intensifying, traders suggest hedging strategies or waiting for clearer evidence of Apple’s next big move.
All told, while Wall Street remains upbeat overall with an “outperform” rating, market participants are bracing for bumps in the road as Apple works to prove its growth story in AI and services.
Based on the one year price targets offered by 41 analysts, the average target price for Apple Inc is $231.40 with a high estimate of $300.00 and a low estimate of $139.00. The average target implies a upside of +8.36% from the current price of $213.55.
Based on GuruFocus estimates, the estimated GF Value for Apple Inc in one year is $210.84, suggesting a downside of -1.27% from the current price of $213.55. Gf value is Gurufocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. For deeper insights, visit the forecast page.
This article first appeared on GuruFocus.