Oppenheimer: Apple's High Valuation Leaves Almost No Margin for Error

Ahead of the earnings release, Oppenheimer maintained a "Neutral" rating on Apple, warning that Apple's valuation is at a high level with limited upside. The firm forecasts Apple's fourth fiscal quarter revenue at $112.9 billion and earnings per share at $1.96, both below the market consensus. The firm's 2027 earnings per share estimate is $8.91, 7% below market expectations, mainly reflecting slowing iPhone growth, rising memory costs, and headwinds facing the services business. Oppenheimer also expects product segment margins to take a 150-basis-point hit in the fiscal quarter that includes December.