Why Apple Stock Was Added To ‘Tactical Outperform’ List Ahead Of Earnings

A Wall Street analyst is pounding the table for Apple (AAPL) stock, saying the consumer electronics giant is “well positioned to outperform against low expectations” for the September quarter and with its guidance for the current quarter.

Evercore ISI analyst Amit Daryanani on Sunday added Apple stock to his firm’s “tactical outperform” list. He rates Apple as outperform with a price target of 250.

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In morning trades on the stock market today, Apple stock rose more than 1% to 230.71.

“Sentiment on Apple has turned more bearish in recent weeks, and we think buy-side expectations are likely lower than current consensus estimates,” Daryanani said in a client note. “Against this backdrop, we expect Apple to deliver in-line results against current estimates, which should enable the stock to work higher.”

Apple plans to release its fiscal fourth-quarter results on Oct. 31.

Apple Stock Nearing Buy Point

Bearish investors are focused on Apple’s challenges in the Chinese smartphone market, where domestic brands like Huawei are gaining ground, he said.

But those concerns are overstated, Daryanani said. Plus, Apple should be able to offset any market share losses in China with growth in developing markets and the U.S., he said.

“The staggered rollout of AI should also result in a stronger-for-longer iPhone upgrade cycle as the release of new features and new geographies should drive strong word-of-mouth advertising,” he said.

Meanwhile, Apple’s wearables and services businesses should provide a boost for the company’s top and bottom lines, he said.

Apple stock is on the IBD Tech Leaders list.

Further, Apple stock is approaching a buy point of 237.23 out of a 13-week consolidation pattern, according to IBD MarketSurge charts. Apple has an IBD Composite Rating of 89 out of 99, according to IBD Stock Checkup.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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