JPMorgan sees ‘better-than-feared outcomes’ from Apple earnings

JPMorgan keeps an Overweight rating on Apple (AAPL) with a $245 price target into the company’s fiscal Q2 results. The firm is positive on the shares, seeing a positive setup into earnings with the likelihood of “better-than-feared outcomes” in relation to both revenues and gross margins. Investor sentiment and the share price are looking to price in demand disruption as well as cost headwinds stemming from tariffs on China, the analyst tells investors in a research note. JPMorgan expects “modest pull-forward in demand,” partly driven by consumer upgrades and partly by channel inventory fill ahead of potential price raises, to support stronger than expected revenue outcomes in Q2 and likely sustain into Q3.