Two Wall Street firms have dueling views on Apple . The news Citigroup on Monday reiterated its buy rating on Apple shares. Analysts said the stock’s decline — down more than 6% over the past month due partly to the company’s delayed AI rollout — has made it more attractive. “AAPL stock price is getting closer to our bear case following the Siri delay sell-off and the risk reward looks attractive,” the analysts said, reiterating their $275 price target. UBS had a different view. The firm said Monday that iPhone sell-through — an important indicator that shows how many of the devices distributed wholesale to retailers were actually sold to customers — has declined in the company’s three largest markets: the United States (down 1% year over year), China (down 17%) and Europe (down 12%). Analysts maintained their hold-equivalent rating on shares and price target of $236. Apple stock is up slightly on Tuesday, trading around $222 apiece. AAPL YTD mountain Apple (AAPL) year-to-date performance Big picture The new research comes as the rollout of Apple’s AI offerings, dubbed Apple Intelligence, continues to be pushed back. The company first unveiled its AI strategy in June 2024, but when the new iPhone 16 models were finally launched in September, Apple Intelligence features weren’t available for users. Last month, Apple also said that it will delay features that would supercharge Siri until 2026. These were originally expected to be launched this spring. Not all of the company’s AI rollouts are being stopped. On Monday, Apple released its new iOS 18.4 update that expands Apple Intelligence into several new languages for users. Get Your Ticket for the Annual Meeting! Secure your ticket today for the CNBC Investing Club’s upcoming 3rd Annual Meeting on May 2nd in Orlando, Florida! Meanwhile, weakness in megacap tech has weighed on Apple this year. The tech-heavy Nasdaq 100 , for example, recently notched its worst quarterly performance in three years. The so-called “Magnificent Seven” — composed of Apple, Meta Platforms , Amazon, Microsoft, Nvidia, Alphabet and Tesla — have taken a beating on recession fears due to President Donald Trump’s changing trade policy. The Club owns all of the Mag 7 minus Tesla and Google-parent Alphabet, which we exited Monday. Bottom line Apple’s lackluster sell-through numbers shouldn’t come as a surprise to Club members. “I just read these things and my eyes glaze over,” Jim Cramer said Tuesday. “I don’t think anyone thinks Apple is having a great sell-through.” Of course, we’re not happy with the decline or that Apple’s been hit with another bearish note. But it doesn’t change our “hold, don’t trade” thesis on the stock. In regard to Apple’s AI delays, the company has rarely been the first to market over the years. Apple didn’t invent the first smartphone or wireless headphones, but look at the enormous commercial success of the iPhone and AirPods. It’s all about product quality and innovation rather than being first. Jim said the Citi note was “much more interesting,” the idea that shares are looking better for buyers. “I think it’s an important stock. We forget, it’s been holding up better than the phony [Mag] 7,” Jim argued, citing the group’s recently rocky performance as a “total bear market.” Nvidia, Meta and Amazon shares are all down more than the iPhone maker over the past month. But we don’t agree with Citi’s buy rating on Apple. The Club maintains it hold-equivalent 2 rating on the stock. On Monday, we considered purchasing more shares of Facebook-parent Meta instead. Not only is the stock the cheapest of the Mag 7, but the company also continues to grab advertising share, which should boost its overall revenues. (Jim Cramer’s Charitable Trust is long AAPL, META, AMZN, NVDA, MSFT. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
People walk past an advertisement for the iPhone 16 Pro at an Apple store during in Chongqing, China, on Oct. 3, 2024.
Cheng Xin | Getty Images News | Getty Images
Two Wall Street firms have dueling views on Apple.
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