Wall Street's consensus view on Apple's price target is too high, despite the average estimate falling in recent months, Robert W. Baird senior analyst Will Power said Friday.
Power said the firm has become more cautious on the stock in the near to medium term, in part on the view that iPhone unit shipments will fall about 2 percent in fiscal year 2017 from 2016. The Street is expecting mid-single-digit growth, he added.
In a note, he said he expects shipments to ramp up not with the upcoming iPhone 7, but when Apple releases the iPhone 8, which Baird believes will include more substantial updates.
Selling pressure has intensified since Apple reported disappointing fiscal second quarter earnings.