Apple(US:AAPL) Zhi Tong Cai Jing·2025-08-01 13:36Core Viewpoint - Apple's stock price rose following the strong performance in its Q3 FY2025 earnings report, but Wall Street analysts had mixed reactions regarding the outlook and potential risks [1][2][3] Group 1: Earnings Performance - Apple reported Q3 revenue of $94 billion and earnings per share of $1.57, with revenue from Greater China increasing by 4% year-over-year, reversing a downward trend from previous quarters [2] - The company clarified that the impact of early revenue recognition was limited to about 1%, primarily from sales in the U.S. in April, and that channel inventory remains at the lower end of target ranges [1] Group 2: Analyst Ratings and Price Targets - Citigroup maintained a "Buy" rating and raised the price target from $207.57 to $245, citing strong performance and a positive outlook despite concerns about a potential revenue decline in Q4 [1] - Needham maintained a "Hold" rating, expressing concerns over rising capital expenditures and delayed AI advancements, suggesting that Apple's stock may struggle to break out before the iPhone upgrade cycle [2] - Morgan Stanley reiterated an "Overweight" rating and increased the price target from $235 to $240, noting that this was Apple's strongest quarterly report in over two years, but anticipated challenges due to tariff and regulatory uncertainties [3] Group 3: Future Outlook and Strategic Initiatives - Analysts highlighted that Apple's investment in artificial intelligence and potential acquisitions in the AI space could be viewed positively by the market, with new products like the next-generation Siri, foldable iPhones, and Vision Pro 2 expected to support future performance [1] - However, concerns were raised about the competitive landscape, particularly with Android's Gemini technology leading over iOS, which could pose valuation risks for Apple if the gap continues to widen [2]