Apple upgraded to Hold at Jefferies on potential Q3 upside

Jefferies analyst Edison Lee upgraded Apple (AAPL) to Hold from Underperform with a price target of $188.32, up from $170.62. Counterpoint reported global iPhone’s sales volume in April plus May was up 15% year-over-year, marking the strongest growth since Q3 of 2021, the analyst tells investors. Tariff-driven pull-in demand and share recovery in China could drive June quarter revenue and EPS growth of about 8% and 10%, respectively, which would be roughly 5% and 9% respectively greater than consensus and greater than Apple’s low-single digit revenue growth guidance, the analyst added while previewing fiscal Q3 results. While the market’s benign view on tariff is “likely overly optimistic,” and Apple’s service revenue has downside potential, good Q3 results “could keep the stock stable” near-term, the analyst argues.