NEW YORK (TheStreet) -- Shares of Apple Inc (AAPL) were down 0.46% to $129.94 in midday trading Tuesday after analysts at Brean Capital issued an upbeat note saying the tech giant will beat the June quarter consensus estimates materially on better than expected iPhone sales.
The firm believes Apple could sell 53 million iPhones in the quarter, which would surpass expectations of between 48 million to 49 million units.
The strong Apple sales would then drive earnings of between $1.83 to $1.95 per share on revenue in a range of between $51.2 billion to $52.5 billion.
Both figures would top the consensus estimates of $1.74 per share on revenue of $48.2 billion, according to Brean Capital's research note.
Analysts believe Wall Street estimates for iPhone sales are too low through 2017. The firm maintained its "buy" rating with a $170 price target.
Similarly, analysts at UBS issued a note this morning saying that the stock has "limited downside."
UBS analysts added that if investors are patient, they can reap the rewards of the recent Applesphere expansion, when it drives the stock higher.
In addition, Apple will announce a $10 music streaming service at its developer conference next week, to compete directly with Pandora (P), according to The Wall Street Journal.
Insight from TheStreet's Research Team:
Apple is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Here is a snippet of what Jim Cramer, Portfolio Manager and Jack Mohr, Director of Research - Action Alerts PLUS wrote about the stock: