Apple: Bank of America says checks indicate weak production trends for FQ3

Bank of America analysts reiterated a Neutral rating on Apple (NASDAQ:) stock heading into the FQ3 results. The Cupertino-based giant is set to report results after market close on August 3.

BofA sees Apple reporting EPS of $1.17 on revenue of $80.7 billion, missing the consensus for EPS of $1.19 on revenue of $81.8B.

“We expect weaker iPhone demand (checks indicate weak production trends) to be somewhat offset by resilience in Services (App Store growth better, subscriptions strong) and FX trends (1% headwind) which is better than guidance of 4% headwind,” the analysts said in a client note.

Still, they raised the price target to $210 per share to reflect higher multiple amid services acceleration.

All-in-all, BofA remains neutral-rated as “positives of new product opportunity and Services growth are offset by weaker consumer demand.”