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:
Of the 110 million people who bought music on iTunes last year, the average customer spent roughly $30 over a 12- month period. Persuading a large share of those buyers to switch to a product that costs $120 annually will be a challenge, yet certainly not outside of Apple's realm of possibility.
- Jim Cramer and Jack Mohr, ' Apple to Expand Its Ecosystem' originally published 6/2/2015 on ActionAlertsPLUS.com.
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Separately, TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate APPLE INC (AAPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
You can view the full analysis from the report here: AAPL Ratings Report