The Greatest Threat To Apple's Momentum

Since Apple Inc.'s AAPL $89.47 six-month low on May 12, the stock has risen over 22 percent while experts have continued to question the uptrend strength and validity. The stock has outperformed the S&P 500 by 12.3 percent over the past 14 trading days, when it reported strong earnings and revenues for Q3.

Bernstein's Toni Sacconaghi commented on the strength of Apple's uptrend and potential roadblocks to the stock in the future.

"Despite its recent run, Apple's valuation remains attractive versus peers," stated Sacconaghi. The analyst also thought Q4 and FY17Q1 estimates were "achievable" adding to Apple stock's continued upside.

According to Sacconaghi, analyst consensus was expecting a 5 percent decline for iPhones in Q4 and a low 51 percent sequential growth in December, which is the lowest in five years.

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The Greatest Threat To Momentum

The Bernstein analyst viewed upcoming weak guidance as the largest threat to near-term stock price momentum. If Apple management forecasts implied iPhone unit growth at or below 70 million, Apple stock prices may reverse their trend. If so, the forecast will raise structural concerns beyond a simply weak current iPhone cycle.

According to TipRanks, Sacconaghi has a 70 percent success rating with a 20.60 percent average return per recommendation.

The analyst has an outperform rating and $125 price target on Apple. The stock traded recently at $109.92.