Apple Inc. (NASDAQ:AAPL) stock edged higher on Monday afternoon after analysts at Pacific Crest said they trimmed their price target for the shares. Despite the price target cut, they still like the stock and recommend owning shares, with their bullish view standing in stark contrast to the bearish view outlined by Fari Hamzei, founder of Hamzei Analytics, on PreMarket Prep this morning.

Apple Inc. (AAPL) Stock Would Rise On In-Line Earnings

Apple stock price target trimmed by Pacific Crest

In a report dated July 10, Pacific Crest Securities analyst Andy Hargreaves said he trimmed his price target for Apple stock from $123 to $121 but maintains his Overweight rating. He noted that investor sentiment appears to be “quite negative,” creating a positive setup for the company’s June quarter report. Because of the high level of negativity surrounding Apple Inc. (NASDAQ:AAPL) stock, he believes an in-line quarter would be just the catalyst needed to send the shares higher.

He expects the iPhone maker to pose $41.7 billion in sales and $1.39 per share in earnings for its third fiscal quarter, which ended in June. His estimates are a little lower than the sell-side consensus of $42.2 billion and $1.40 per share, but he believes the buy-side is more conservative than the sell-side. He also expects guidance for the September quarter to be “at least in line with sell-side consensus,” which he said “should provide a measure of relief to investors who are concerned about further deterioration through the iPhone 7 cycle.

His latest checks with Taiwanese suppliers indicate that orders for the iPhone 7 and 7 Plus in the second half of this year might be 20% lower than orders for the iPhone 6s and 6s Plus were last year. He believes the reason for this is because Apple ordered too many components early in the 6s cycle and also because of a mix shift toward the iPhone SE rather than any incremental downside to current consensus. Wall Street expects Apple to sell 118 million iPhones in the last six months of this year, and Hargreaves said his soft iPhone 7 supply checks are already mostly baked into current estimates.

AAPL stock is “dead money”: Hamzei

While the Pacific Crest analyst remained largely positive on Apple Inc. (NASDAQ:AAPL) spot despite his price target cut, Fari Hamzei of Hamzei analytics said on PreMarket Prep this morning that the shares will plunge to $80, according to a post from Benzinga (via Yahoo Finance). Apple stock hit its lowest level in two years in May at $89.47 per share.

According to Hamzei, Apple Inc. (NASDAQ:AAPL) is not innovating enough to shore itself up, so he sees no room for upside. He doesn’t think an Apple TV will turn things around and added that the Apple Watch hasn’t done anything to help matters. He was also incredulous at the idea of an Apple Car, asking rhetorically, “Are you kidding?”

The analyst also doesn’t believe that just the possibility of future innovations isn’t enough to warrant investing in Apple stock, referring to it as “dead money.” Apple Inc. (NASDAQ:AAPL) shares edged higher by 0.53% to $97.19 in afternoon trading on Monday.