Apple (AAPL.US) became the market focus on Friday as its first-quarter earnings guidance for the fiscal year ending in December significantly surpassed Wall Street expectations. The company anticipates strong growth in the quarter ending December, particularly with renewed momentum in the Chinese market. However, despite the optimistic outlook, Apple's stock reversed early gains and turned negative in Friday's trading session, erasing pre-market advances. Its suppliers, including Skyworks Solutions (SWKS.US) and Corning (GLW.US), showed mixed performance.

Citigroup analyst Atif Malik noted in a research report that Apple's upbeat guidance benefits from a stronger product cycle, especially the performance of the iPhone 17 Pro. "We believe the iPhone installed base is the foundation for every upgrade cycle," he said. "Apple is experiencing a record upgrade wave, with users across different demographics showing enthusiasm for the latest models, particularly drawn to the iPhone Air's slim design and camera features."

Malik expects Apple's first fiscal quarter ending December to be its strongest ever in terms of total sales and iPhone revenue. He added that Apple is not only seeing faster upgrade rates but also an increase in new users joining its ecosystem.

Driven by this optimism, Malik reiterated a "Buy" rating on Apple and raised the price target from $245 to $315. Meanwhile, KeyBanc Capital Markets analyst Brandon Nispel described Apple's earnings as "solid" and its guidance as "noteworthy," projecting double-digit growth in iPhone and overall revenue. However, given recent stock gains, he expects a potential short-term "pause" in Apple's share price. Nispel maintained a "Neutral" rating.

Needham analyst Laura Martin, while assigning a "Hold" rating, acknowledged that the strong guidance "highlights Apple's moat." However, she expressed doubts about the sustainability of iPhone 17 demand. "We remain cautious as Apple's current valuation appears relatively expensive, with challenging fundamental growth and rising competitive pressures," Martin wrote. "We believe the stock may need to wait for the next iPhone upgrade cycle to regain strength."

In addition to these firms, several other banks, including Melius, raised Apple's price targets post-earnings, while Jefferies upgraded its rating outright.