David Mareuil | Anadolu Agency | Getty Images
Customers inspect new iPhone 8 and plus models at a telecom shop in Omotesando Avenue in Tokyo, Japan on September 22, 2017.
The analyst revised his September quarter sales and earnings per share forecasts for Apple to $49.5 billion and $1.79 from $50.9 billion and $1.88 a share respectively, compared to the Wall Street average of $50.9 billion and $1.88 a share.
“We do expect volatility ahead as consensus estimates calibrate to a lower than expected September quarter given slightly more tempered demand ahead of iPhone X launch (Nov 3rd) coupled with supply constraints for iPhone X,” he wrote.
Apple has lost nearly $50 billion in market value since the company announced its latest line of products on Sept. 12.
Despite recent weakness this month, Apple is still one of the market’s best-performing large-cap stocks so far this year. Its shares have rallied 31 percent through Friday versus the S&P 500’s 12 percent gain.
Suva is still bullish on Apple shares over the long run.
“We believe Apple can return to sustainable growth post iPhone X. We see growth opportunities in Services (in-app purchasing, Apple Pay, iCloud, Apple Care, etc.) and India, aka Applewood, as underappreciated,” he wrote. “Despite the outperformance this year, shares remain attractively valued relative to the market and can undergo sustainable multiple expansion.”
The company did not immediately respond to a request for comment.
Apple shares are down 1 percent in Monday’s premarket session after the report.