NEW YORK (TheStreet) -- Shares of Apple (AAPL) - Get Report are surging Wednesday morning, after the company reported better-than-expected 2016 third quarter results after yesterday's market close, but Bernstein analyst Toni Sacconaghi explained why he is sticking with his price target cut on CNBC's "Squawk on the Street" Wednesday.

Before Apple's earnings release, Sacconaghi cut the stock's price target to $125 from $135 with an "outperform" rating.

"Clearly this was a case of better than feared," Sacconaghi stated on the tech giant's third quarter earnings.

Apple reported earnings of $1.42 per share on revenue of $42.4 billion for the latest quarter, higher than analysts' expectations for earnings of $1.38 a share on $42.36 billion in revenue.

When looking at the numbers, third quarter earnings and revenue were still down year over year, Sacconaghi noted.

In the 2015 third quarter, Apple reported earnings of $1.85 per share on revenue of $49.61 billion.

"So those number in and of themselves were not celebratory," he continued.

Shares of Apple are soaring by 7% to $103.44 this morning.

(Apple is a core holding of Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

Separately, TheStreet Ratings rated Apple as a "buy" with a score of B.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: AAPL

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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