As Apple's stock price reaches a new high, analysts are concerned about iPhone sales.
Bank of America global research analyst Wamsi Mohan raised Apple's target price from $190 to $210 on Wednesday, but reiterated a "neutral" rating on the stock.
Apple's stock price closed up 0.7% at $195.10, reaching a new all-time high during trading hours.
As Apple's earnings report is set to be released in two weeks, Wall Street analysts have begun adjusting their expectations for the second quarter and beyond.
Analysts Concerned About Apple's Sales
At least one analyst is concerned about Apple's short-term sales outlook, which accounts for over half of Apple's revenue.
Wamsi Mohan, a global research analyst at Bank of America, raised Apple's target stock price from $190 to $210 on Wednesday but maintained a "neutral" rating on the stock.
He pointed out that there are concerns that Apple's sales may be lower than expected.
In a research report, Mohan stated that the second-quarter performance is expected to be "broadly in line with" Wall Street's expectations.
He predicts revenue of $80.7 billion and earnings per share of $1.17 for the quarter, slightly lower than Wall Street's expected revenue of $81.8 billion and earnings per share of $1.19.
Mohan noted that although management expects a 4% adverse impact from exchange rates, he believes the actual impact will be less than 2%.
Third-Quarter Revenue Expectations Below Wall Street's
However, Mohan is concerned that the guidance for the third quarter may disappoint Wall Street. Channel surveys suggest that the release of the iPhone 15 may be delayed by a few weeks, pushing the debut of the next-generation phone to the fourth quarter.
He currently forecasts revenue of $87.1 billion for the third quarter, significantly lower than the market's expectation of $91.6 billion, even with the favorable impact of a 2.5% exchange rate.
Mohan stated that he expects a year-on-year decline in sales for all of Apple's hardware products in the third quarter of this year.
Considering the potential timing of new Apple releases and the more challenging competition for Macs, he believes that product revenue in the third quarter may further decline.
The analyst predicts that Apple's sales in the third quarter will be 48 million units, lower than the widely predicted 51 million units on Wall Street.
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