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Apple shares rallied after the company beat Wall Street expectations on the top and bottom lines as well as for average iPhone selling price.
Apple's stock jumped more than 4 percent in premarket trading Wednesday.
"The combination of a strong macro environment and an increasingly engaged customer base led to double digit growth in all regions on a sell-in basis during the June quarter," Morgan Stanley said in a note. "A clean beat on the path to $1 trillion."
RBC was even more blunt, "Hit snooze for 90 Days. Path to trillion intact."
Others, like Deutsche Bank, were more measured in their commentary.
"With 80 percent of the company's sales exposed to secularly challenged businesses, we believe the long-term growth outlook remains limited," the brokerage said. "With positives and negatives largely balanced at current levels, we view valuation as fair and maintain our Hold."
Here's a wrap of all the major analyst opinions.
"Third-quarter revenue beat expectations largely on iPhone average selling prices and Services with wearables maintaining momentum from previous quarters. September-quarter guidance also topped expectations and reflects a similar mid teens revenue growth rate for the overall company despite the more difficult compare from a year ago. The combination of a strong macro environment and an increasingly engaged customer base led to double digit growth in all regions on a sell-in basis during the June quarter."
"A clean beat on the path to $1 trillion."
"Apple reported a modest June-quarter beat and guided Sept-quarter ahead of expectations. Given heightened concerns around large-cap tech and ongoing U.S./China tariff issues, this was a positive print vs. expectations. While we expect investors to wait for pricing clarity on next gen iPhones before deciding on Apple stock, near-term upward bias on the name remains given multiple tailwinds stacking up."
"While investors looking for a 'super cycle' will remain disappointed, Apple's narrative is shifting towards their ability to sustain mid-single digit sales growth despite flat iPhone units and low-to-mid teens EPS growth via buybacks. Maintain OP and adjusting our target to $225."
"Hit Snooze for 90 Days. Path to Trillion Intact"
"Apple reported better-than-expected third-fiscal-quarter 2018 results with sales upside driven by iPhone, Services, and Wearables. While sales beat, iPhone unit growth of just 1 percent year over year remained lackluster, as iPhone sales upside continues to come from the reset higher in average selling price. Earnings per share beat expectations by $0.18, but we estimate that just $0.04 of the beat came from revenue upside, while the remaining $0.14 was helped by below-the-line items like higher other income, a lower tax rate, and buybacks. Given its revenue base and size, Apple's recent growth has been impressive. However, with 80 percent of the company's sales exposed to secularly challenged businesses, we believe the long-term growth outlook remains limited. We continue to see support for the shares from the company's substantial share buyback, however, with positives and negatives largely balanced at current levels, we view valuation as fair and maintain our Hold."
"We believe the negativity on Apple stock is overdone and the majority of our thesis remains unchanged regarding 'Applewood & 5 Reasons the Stock Should Trade Higher' as detailed in this report. Specifically we highlight our view of Applewood which is Apple's growth in service 31 percent year over year or 28 percent excluding one-time items which now represent 18 percent of Apple's total revenues coupled with early innings growth of iPhone units in emerging markets and less than 2 percent share in India, thereby driving a growing sticky user base, which we have dubbed Applewood."
"Apple demonstrated better demand resiliency than we had expected in the summer as evidenced by an iPhone average selling price of $724 which was 5 percent ahead of our forecast. Guidance was just a touch ahead of our numbers but is consistent with our above Street average selling price estimates that are based on a detailed stock keeping unit level model. We believe Street forecasts are likely to move up but that average selling price expectations probably will remain too low for the December quarter as Apple continues to see support from ongoing mix toward higher average prices. Services growth adjusted for one offs dipped slightly but not that materially to 28 percent year over year from 31 percent last quarter."
"Five reasons why we believe Apple stock should outperform include: underlying iPhone demand remains strong and average selling prices are moving higher, gross margin has upside in fiscal 2019 given tailwinds from component cost reductions and potential tailwinds from foreign exchange, continued strong capital returns with $90 billion of buyback authorization remaining, continued strong growth in Services revenue across geographies (broad-based strength with contribution from licensing, App Store and Apple Care in the quarter), and strong demand for wearables (Apple watch grew mid 40 percent year over year and AirPods remain in high demand) drove 60 percent year over year growth."
"Yes, inventory is the highest in memory for a second calendar quarter (primarily component related, should burn completely off in CQ3) but implied iPhone units of 47 million to 48 million for CQ3 was spot in-line + services seem to be hitting an inflection. Apple is also effectively managing through some challenges on the cost side that should abate, though continued devaluation of key currencies like Chinese Yuan are an overall negative that bears watching. Given ecosystem switching which has become nearly non-existent, we think of iPhone as a recurring model in much the same way as services – albeit without much growth until there is a major form-factor change. Fortunately, this is on the horizon with foldable. In the meantime, Apple should at least hold serve with iPhone bias more to the upside based on procurement, average selling price still strong in the $720 to $725 range for the third calendar quarter, and services set to do about $3 per share in calendar 2020."
"We reiterate our Market Perform rating on Apple. June quarter results were slightly ahead of expectations; the variance vs. expectations was small enough that we expect neither bears nor bulls to change their view following this report. Apple's rubber meets the road once the new phones come on sale, and we don't expect the fall lineup to be different enough to improve the trajectory of iPhone sales. The Services business now represents the bull case for the stock, but our view is that it will be difficult for Apple to sustain the current rate of services growth due to a large portion tied to device sales coupled with a law of large numbers issue from App Store contribution."
"Apple reported June quarter revenue and EPS above the Street, with September-quarter revenue guidance also ahead of consensus. For the June quarter, iPhone was strong, as Apple shipped a total of 41.3 million units vs. consensus at 41.79 million and iPhone ASP was $724, compared to the Street at $694. Services revenue was $9.55 billion and gross margin was 38.3 percent. Revenue guidance for the September quarter is 3 percent above consensus, with the gross margin outlook in-line at 38.3 percent. With the potential launch of a wider array of 'X-gen' iPhones on the horizon, we recommend owning Apple on the potential for a 'super-long' cycle involving an ongoing multi-year move to the 'X-gen' form factor. Maintain overweight, price target to $218."