Analyst defends Apple, says iPhone X order cut reports are incorrect

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Excited newly-released iPhone X customers in Kuala Lumpur, Malaysia.

Apple iPhone X sales are solid despite recent negative media reports to the contrary, according to one Wall Street firm.

Rosenblatt Securities reiterated its buy rating and $180 price target on Apple shares, predicting solid iPhone X sales for the December quarter.

Apple shares declined 2.5 percent Tuesday, a day after Taiwan’s Economic Daily reported the tech giant will cut its forecast for the iPhone X, citing unidentified sources.

“Our research indicates no further order cuts after the holiday season. Taiwanese media reports and estimate cuts could be confusing the market as we believe they are referring to previously mentioned iPhone 8/8 Plus production cuts with an iPhone X production ramp in December,” analyst Jun Zhang wrote in a note to clients Tuesday.

“We believe iPhone X sales were stable in the North American market through-out the holiday season and has likely seen an acceleration in China’s market over the last two weeks.”

The analyst noted how the firm doesn’t see any order cuts at 3-D sensing and OLED display panel suppliers. Both components are used inside the iPhone X. He also said checks with Chinese companies reveal iPhone X sales are already above iPhone 8 and 8 Plus sales combined.

Apple is one of the market’s best-performing large-cap stocks so far this year. Its shares rallied 51 percent through Friday versus the S&P 500’s 20 percent gain.

Apple did not immediately respond to CNBC’s request for comment on the Economic Daily report.