Apple (AAPL) stock has been upgraded to “Hold” by Jefferies, but still cautious about AI

Apple Inc. (NASDAQ:aapl) is one of 10 Trend AI is in stock in news and ratings. On July 2nd, Jeffries upgraded its stock to “hold” from underperformance, increasing its price target from $171 to around $188 per share.

Analyst Edison Lee highlighted Apple’s 15% annual sales increase in April and May as the catalyst behind the upgrade. Lee also estimated that iPhone sales increased 19% year-on-year during the Chinese shopping holiday on June 18th.

“This is a strong indication that AAPL is deciding to defend China’s market share, and Chinese consumers are still willing to buy iPhones at a low price. We believe the 40m unit is likely to be maintaining the lowest AAPL in China,” the analyst wrote. “Given the special circumstances over the past three months, we see potential surprising surprises for AAPL’s 3QFY25 results.” The good quarter in June said, “We can keep our stocks in a stable reach.”

However, he further warned that strong sales in the June quarter could mean slower demand for the September quarter.

“The results of Jun Q may be a positive surprise, but the SEP Q guidance could still be curtailed.” “We believe sales could be at risk as new features are lacking and AI is not yet a game changer. I’m worried about the appeal of 17 Slim.

Apple may also face long-term risks, including the downsides of revenue from the App Store, the company noted.

Apple is a technology company known for its consumer electronics, especially for its iPhone and MacBooks.

Although we acknowledge AAPL’s potential as an investment, we believe certain AI stocks offer a greater reverse chance, pose a risk of decline. If you’re looking for a highly undervalued AI stock that can make a significant profit from the tariff and supervision trends of the Trump era, check out our free report. Best Short-Term AI Stocks.

Read next: 10 AI stocks in the spotlight and Currently, we have 10 Buzzing AI stock on Wall Street.

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